Kenya is preparing to sign a new power agreement with Ethiopia, just days after Addis Ababa switched on Africa’s largest hydroelectric project.
Speaking at the Africa Climate Summit in Ethiopia’s capital on Monday, President William Ruto said the country would purchase reserve electricity from the Grand Ethiopian Renaissance Dam (GERD).
The dam, which now has a capacity of 6,450 megawatts, promises to reshape the energy landscape in the region.
“Kenya’s peak demand has already gone above 2,300 megawatts and it keeps growing,” President Ruto said. “This additional capacity will strengthen our reserve margin and reduce the risk of shortages.”
Officials in Nairobi say the deal would provide not just more power but also greater stability for Kenya’s grid. Hydropower supplies from local rivers often drop during long dry spells, leaving homes and businesses exposed to blackouts. Ethiopia’s massive plant, they argue, could help fill that gap.
The agreement would also strengthen political ties between the two neighbours. But the project has not been without controversy. Egypt and Sudan, both downstream on the Nile, have long expressed concerns that the dam could limit their access to water.
Ethiopia insists that the GERD will not harm its neighbours and says the project is key to lifting millions of its citizens out of energy poverty. Kenya, for its part, is focusing on its own immediate needs. “Beyond affordability, this supply will enhance reliability, especially during drought,” President Ruto added.
Analysts say the deal, if finalised, could lower costs for Kenyan consumers in the long run, while giving Ethiopia a vital export market for its new power surplus. For now, both governments appear eager to move quickly.
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