Kenyans are poised to benefit from significantly lower electricity costs as the Menengai Geothermal Project progresses steadily. The project, led by the Geothermal Development Company (GDC), marks a critical step toward enhancing clean, affordable, and reliable power in the country.
In 2023, Sosian Energy a local firm commenced electricity production at the first Menengai power plant, following a Sh6.5 billion investment funded by China-based Zhejiang Kaishan Compressor. The plant, which produces 35MW, is part of a broader plan involving three Independent Power Producers (IPPs), including Quantum Power East Africa and OrPower Twenty-Two, each contributing 35MW for a cumulative 105MW to the national grid.
GDC has already drilled steam wells producing 165MW, exceeding the steam requirements for the initial phase. With Quantum Power’s plant 60% complete and OrPower’s at 50%, both are expected to join the grid by early next year. The cost of power from Menengai is projected at just Sh8 per kilowatt hour (kWh), a major drop from the Sh22/kWh from fossil fuel sources.
This shift is expected to cut fuel levies by Sh13 billion annually and reduce Kenya’s reliance on costly diesel-generated electricity, potentially saving the economy Sh45 billion. Additionally, the project is set to cut greenhouse gas emissions by 1.95 million tonnes of CO₂ per year.
Beyond electricity, GDC is also leveraging geothermal steam for industrial and agricultural use, powering greenhouses, milk pasteurizers, aquaculture ponds, and even laundries boosting efficiency and reducing energy costs by up to 70%. The initiative also supports tourism through geothermal spas and enhances food security through cost-effective food processing.
Kenya currently leads Africa in geothermal production with 700MW, accounting for 44% of the country’s power mix. GDC aims to inject an additional 1,065MW into the grid in the next decade, solidifying Kenya’s role as a clean energy leader and creating opportunities for industrial growth, job creation, and sustainable development.
