NAIROBI —Kenya is set to import 200 megawatts of electricity from neighbouring Ethiopia in a bid to ease mounting pressure on its overstretched power grid.
The deal comes as Kenya teeters on the edge of an energy crunch. In February, the country’s power supply was just four megawatts above peak demand a margin so slim that even a minor disruption could mean blackouts.
“This is about ensuring stability,” said Daniel Kiptoo, Director General of Kenya’s Energy and Petroleum Regulatory Authority (EPRA), speaking at a conference in Nairobi on Tuesday. “The extra 200 megawatts will help build a buffer to protect the grid.”
Power on a Tightrope
Kenya’s installed electricity capacity stands at 3,243 megawatts. But in reality, only about 2,320 megawatts were reliably available as of early this year. Peak demand reached 2,316 megawatts in February, leaving a dangerously narrow reserve.
That shortfall has pushed the Ministry of Energy to act quickly. A technical team has already travelled to Ethiopia to hammer out the details of a new power purchase agreement. Ethiopia, with its hydropower-rich grid, has become a key supplier to the region.
According to Kiptoo, the planned import will help lift Kenya’s energy reserve margin to at least 15 percent an internationally recognised threshold to safeguard against sudden outages or spikes in usage.
Waiting for Local Supply to Catch Up
At the heart of the problem is a supply lag created by a three-year freeze on onboarding new independent power producers. The moratorium, introduced amid concerns over high tariffs and idle capacity, is now under review.
“It’s a delicate balance,” one official familiar with the policy discussions said. “We don’t want to lock ourselves into expensive contracts, but we also can’t afford a national blackout.”
The move to import power suggests that the government is leaning toward short-term fixes while reassessing its long-term energy strategy.
Regional Energy Cooperation
This isn’t the first time Kenya has turned to Ethiopia. In late 2022, the two countries launched a cross-border power line designed to boost regional trade in electricity. With climate challenges affecting generation and rising demand across urban centres, cooperation between East African neighbours has taken on greater urgency.
Kenya has made strides in renewable energy, with geothermal, wind and solar making up a growing share of its mix. But ageing infrastructure and fluctuating rainfall continue to strain capacity.
At Tuesday’s event, held during EPRA’s research and innovation conference, Kiptoo hinted that energy diplomacy will be central to Kenya’s strategy going forward.
“Regional interconnection is not just a backup,” he said. “It’s part of the solution.”
As talks with Ethiopia progress, Kenyans are watching closely. In a country where power cuts still disrupt daily life, even a few extra megawatts can mean the difference between light and darkness.
