Talks With Stalled Power Projects Return to Life While the Country Leans Harder on Imported Electricity
Kenya tries to restart power negotiations that sat untouched for years while the grid strains under rising demand and the clock keeps moving.
The Energy and Petroleum ministry says talks with 54 independent power producers are moving again, although each project sits at a different point in the negotiation pipeline. Parliament’s decision to end a seven-year freeze on new power purchase agreements opened the path, and the timing is tight. The grid has been stretched by evening rationing in some regions and by heavier reliance on imported electricity from Ethiopia and Uganda.
Most of the pending projects are small hydropower plants, though two proposed wind farms stand out for their scale. Each one targets 100 megawatts, a meaningful addition for a system that has been running close to its limits.
Large Wind Projects Return to the Agenda
One of the 100 MW wind projects is planned for Meru County under Hewani Energy, backed by Seriti Green of South Africa together with Eurus Energy of Japan. The second is led by Kipeto Energy, which already has an active agreement with Kenya Power.
Four more wind projects, each rated at 50 MW, are part of the restarted talks. They involve Chania Green, Prunus Energy Systems, Aperture Green and Sub-Sahara W. Developers have been revising financial models and legal drafts, although Kenya Power notes that some of the latest markups show wide differences on key terms. Several meetings are scheduled this month to narrow those gaps.
A Freeze That Carried Heavy Costs
The long moratorium left the country in a tricky position. Demand kept rising while new plants stayed stuck in planning files. Kenya Power grew more dependent on imports to support the evening peak. Imported electricity accounted for 10.6 percent of national supply by June 2025, more than double the previous year and a steep climb from early 2021.
Those imports helped reduce the length and spread of rationing between 5 p.m. and 10 p.m., but they also underscored how little room the grid had to absorb further demand. Without new capacity, every outage, low-river season or plant maintenance cycle tightens the margin.
Developers Push Toward Financial Close
The push to catch up is now urgent. Plants typically need at least eighteen months from groundbreaking to commissioning. Any hold-up in financing or contract approval feeds directly into the pressure already felt across the system.
Kenya Power says it held several meetings with developers last month. Many producers want financial close established quickly so construction can begin. The utility expects the renewed talks to move faster now that the freeze is gone, though the number of projects and the technical detail in each contract mean the workload is heavy.
A Narrow Window to Expand Generation
The path forward depends on how fast these agreements can be finalised and how many projects secure funding. If the negotiations stay on track, the country can start filling the gap between demand and local supply. If they drift again, reliance on imports will deepen and rationing risks will linger.
For now, the door is open. What matters is whether the teams on both sides can carry the talks over the line before the grid’s strain grows sharper.
Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
