Power demand hits new high in November amid generation fears

Olkaria Geothermal Power Plant in Naivasha, Plans are at an advanced stage to connect the new geothermal power plant with installed capacity of 165.4MW into the country's national power grid.[FILE,Standard]

Demand for electricity in the country hit a new high in November, with power sector agencies recording a new peak demand of 2,418.77 megawatts on November 18.

This further puts pressure on the country’s generating capacity, which has been struggling to keep pace with demand.

Power producer Kenya Electricity Generating Company (KenGen) says the growing power demand was an indicator of an expanding economy.

“Kenya’s electricity demand has reached the highest levels in our nation’s history of 2,418.77mw recorded on November 18, 2025, reflecting a rapidly expanding industrial base, the growth of digital infrastructure and a vibrant, forward-moving economy,” said KenGen Chairman Alfred Agoi, speaking after the firm’s 73rd Annual General Meeting in Nairobi on Thursday.

The country has, in recent months, registered successive new peak demands, the highest power requirements in the power system at any given time. In Kenya, this happens in the evening between 6pm and 10pm.

In January this year, peak demand was recorded at 2,304mw, but this has consistently grown to the latest 2,418.77mw, with concerns that generating capacity has not been keeping pace with growth in demand.

This has seen the country increasingly rely on imports, which are now the second largest source of power consumed in the country, second to power sourced from KenGen. The country has also increased reliance on thermal power plants, which are associated with a high cost of power.

President William Ruto recently said power sector agencies have been rationing power as they cannot cope with demand during peak hours.

Energy Principal Secretary Alex Wachira said several power plants are nearing commissioning and would add 133mw by the end of next year, which will ease pressure on the generating capacity.

These include Kengen’ Olkaria I, which is currently under rehabilitation and expected to inject 63MW to the grid.There are also Orpower 22’s and Globeleq’s plants at Menengai that have a generating capacity of 35MW each, which are being put up at fields developed by the Geothermal Development Company (GDC).

“We have Olkaria 1, which will start commissioning tests next year in June and by September 2026, we should have 63MW in. Orpower 22 will start commissioning tests on December 20 and by March 2026, we should have 35MW and another 35MW from Globeleq… giving us about 133MW coming to the grid next year,” he said.

Wachira also said there are plans to build a Battery Energy Storage System (BESS) plant of between 250 and 300 megawatt-hours (MWh).

“That should be able to come in in the next 16 months,” said the PS, adding that this would make use of geothermal during off-peak hours.  “This will ensure that we have enough power to push us in the evening peak hours.” He explained that the BESS plant would be developed through a Public-Private Partnership mode, but added that in the long term, KenGen would also be investing in battery storage as part of the measures aimed at strengthening power supply.

“We are looking at deploying BESS plant using private sector capital, about 250mwh and KenGen will also put up another battery energy storage because the grid needs in excess of 1,000MWh storage,” he said.

The PS added that other generating projects in the pipeline include KenGen’s 42.5MW solar power plant that KenGen will be building at the Seven Forks Dam, which is scheduled to be ready in 2027, as well as an additional 200MW from Ethiopia. 

“All these will give us about 400 to 500MW that will be able to sustain our grid in the interim before we bring more renewable resources, including geothermal at Paka and Silali fields, as well as wind power from Marsabit,” he said.

The project pipeline is running on empty after a seven-year freeze in the signing of agreements between Kenya Power and power producers, which was put in place over concerns that the deals were seen to be at the detriment of consumers. The moratorium was lifted last month. 

At KenGen’s AGM, shareholders approved a dividend of 90 cents per share for the year to June 2025, an increase from 65 cents that the firm paid in the period to June 2024.

The higher dividend is on account of a 54 per cent increase in profit after tax, to Sh10.48 billion, driven by cost reductions, expanded revenue streams and an improved foreign exchange position.