Kenya is set to import an additional 200 megawatts (MW) of electricity from Ethiopia in a strategic move aimed at bolstering its national grid and enhancing power supply reliability. This development comes amid concerns over the country’s narrowing electricity reserve margin, which has been hovering dangerously close to peak demand levels.
Speaking at the launch of the Energy and Petroleum Regulatory Authority (EPRA) Research and Innovation Conference in Nairobi, EPRA Director General Daniel Kiptoo confirmed that a technical team has been dispatched to Ethiopia to negotiate the terms of the expanded power purchase agreement (PPA). Kiptoo emphasized the importance of the initiative, noting that the additional power will raise Kenya’s reserve margin to the recommended 15 percent, a crucial buffer to prevent potential blackouts and ensure system stability.
Currently, Kenya’s installed electricity capacity stands at 3,243 MW, with an effective capacity of 3,030 MW. However, as of February 2025, the available capacity had dipped to 2,320 MW—barely above the highest recorded peak demand of 2,316 MW in the same month. This razor-thin margin has raised alarms within the energy sector, prompting the Ministry of Energy to reconsider its three-year moratorium on onboarding new independent power producers (IPPs).
Kiptoo noted that lifting the moratorium is being actively discussed, as the country seeks to diversify its energy sources and increase supply resilience. The additional import from Ethiopia is viewed as a short- to medium-term solution while long-term strategies are developed.
Ethiopia, which has invested heavily in hydroelectric projects like the Grand Ethiopian Renaissance Dam, has become a key regional power exporter. The import deal aligns with Kenya’s vision of tapping into regional energy markets through interconnected grids under the Eastern Africa Power Pool initiative.
As Kenya continues to pursue a clean, affordable, and reliable energy mix, the importation of Ethiopian power is expected to provide much-needed breathing room for planners and developers, while averting possible power supply crises in the near future.
