Infrastructure

KenGen Seeks Sh590bn to Add 1,500MW to National Grid

The company has secured financial backing for a 300MW geothermal project.

Updated on

December 5, 2024

KenGen chief executive Peter Njenga. (Photo: KenGen)

KenGen has launched an ambitious initiative to raise $4.2 billion (Sh590 billion) to finance its 10-year strategy, with the ultimate goal of adding 1,500 megawatts (MW) to the national grid.

The power producer has already secured financial backing from various lenders for a 300MW geothermal project, one of the core components of this extensive investment plan.

Additionally, the German government has expressed its commitment to assist Kenya by providing expertise in harnessing the country’s vast geothermal and solar energy potential.

This was revealed during a recent visit to Olkaria, Naivasha, by German Vice Chancellor Dr. Robert Habeck, who led a delegation of investors exploring Kenya’s renewable energy.

Dr Habeck commended Kenya’s efforts to embrace green energy in the face of global climate challenges—emphasising the need for more investment in solar and geothermal energy.

Speaking on the sidelines of the tour, KenGen’s chief executive Peter Njenga highlighted the company’s ambition to raise electricity production by 1,500MW over the next decade, with 800MW expected to come from geothermal sources.

“We require $4 billion for the ten-year vision and we are currently engaging some financiers including the German government on this project,” Mr Njenga said.

The CEO noted that the company was engaging with financiers, including the German government, to fund this expansive initiative. He also disclosed that KenGen was advancing its plans to develop a 4.2MW solar plant at the Seven Forks hydro-dams in Lower Tana.

The Seven Forks Solar PV project, expected to start next year, is funded by the French Development Agency (AFD) to the tune of Sh8.4 billion.

The solar park will be set up on 80 hectares owned by KenGen. The site has a high solar irradiation of more than 2,000kWh/m2, making it ideal for development.

The solar park is scheduled to begin operations in December 2027.

KenGen has previously revealed its plans to seek new geothermal opportunities within the Tana River Basin and in the Rift Valley while expanding existing ones in Western Kenya.

So far, the company has only exploited 0.9GW of the 10GW geothermal potential.

“The country’s geothermal potential stands at over 10,000MW, and we shall continue to tap into this as electricity demand continues to rise,” Mr Njenga said.