Kenyans are on the verge of paying lower electricity bills as the Menengai Geothermal Project nears full implementation. According to the Geothermal Development Company (GDC), two additional independent power producers (IPPs) will begin generating electricity from the Menengai steam wells in Nakuru by early 2026.
Sosian Energy, a local firm, started power production at Menengai in 2023. The facility was built through Ksh 6.5 billion financing from Zhejiang Kaishan Compressor based in China. Sosian also entered into a Ksh 1.8 billion, 14-year operations and maintenance agreement for the plant.
GDC developed the steam fields and drilled the wells. After securing the resource, it selected three private developers through a competitive bid in 2013: Sosian Energy, Quantum Power East Africa, and OrPower Twenty-Two. Each was licensed to build and operate a 35 MW power plant, totaling 105 MW of electricity.
Eric Wamanji from GDC confirmed that Quantum Power’s plant is 60 percent complete, while OrPower’s is halfway through construction. Once the two plants join Sosian, GDC estimates power costs from Menengai will drop to about Ksh 8 per kilowatt-hour, compared to the Ksh 22 per kilowatt-hour from thermal and hydroelectric sources.
“This project will bring down energy prices, attract new investors, and boost job creation,” Wamanji said during a public event at the Nakuru ASK Trade Fair.
GDC has drilled 43 steam wells at Menengai, with 24 already tested to produce 165 MW enough to power the three planned plants. The Kenya Electricity Transmission Company (KETRACO) has completed a 132-kilovolt substation to connect the generated electricity to the national grid.
Under what is called the Menengai Model, GDC assumes early exploration risk before handing over generation to private developers. Each IPP will operate its plant for 25 years.
Beyond cheaper power, the project is projected to reduce Kenya’s annual fuel levy by over Ksh 13 billion. This would cut reliance on diesel-fueled electricity and save the country approximately Ksh 45 billion in fuel purchases annually.
Globeleq, a UK-based power company, acquired a majority stake in Quantum Power in 2021. With backing from British and Norwegian development financiers, the company secured Ksh 8.89 billion in funding to complete its plant.
According to GDC, the 105 MW capacity could supply electricity to 500,000 homes and 300,000 businesses. Plans are underway to build industrial parks near the plants to take advantage of the cheaper and locally available steam.
The project also helps Kenya meet its climate goals. It is expected to reduce greenhouse gas emissions by 1.95 million tons of carbon dioxide every year.
GDC began drilling at Menengai in 2011. OrPower Twenty-Two broke ground in 2024 and plans to complete its plant within 14 months at a cost of Ksh 11.7 billion.
Wamanji said GDC expects to earn Ksh 1 billion in annual revenue once all three plants are operational. The company is also pursuing additional steam capacity from fields in Baringo-Silali and the South Rift.
GDC aims to add 1,065 MW to the grid in the next decade: 465 MW from Menengai, 300 MW from Baringo-Silali, and 300 MW from the South Rift. The long-term goal is to reach financial self-sufficiency by 2029.
GDC is also promoting direct-use geothermal technologies. Since 2015, the company has demonstrated steam-heated greenhouses, aquaculture ponds, milk pasteurization, laundry units, and grain dryers in Menengai. A steam-powered grain dryer there can process 20 tons of cereal per day.
Geothermal heating has cut energy costs for local farmers and processors. Milk pasteurization costs drop by 70 percent. Heated greenhouses reduce production expenses by 40 percent. The steam can be piped up to 10 km to homes and industries near the crater.
“We’re opening our doors to investors to use geothermal energy for industrial, agricultural, and domestic applications. This will position Kenya as a competitive hub for low-cost, clean energy,” Wamanji stated.
Kenya leads Africa in geothermal capacity with 700 MW. Data from the Energy and Petroleum Regulatory Authority shows geothermal contributes 44.12 percent to the national grid, compared to 27 percent from hydro and 13 percent from thermal.
Worldwide, Kenya ranks ahead of Japan and Italy in geothermal generation, and is second only to Ethiopia in Africa. As Kenya deepens investment in renewable energy, lower electricity costs appear within reach for millions of consumers.
