Kenya Power purchases 56% more electricity from Ethiopia and Uganda

The amount of electricity Kenya imports from its neighbors has climbed by 56% in the last year due to the country’s growing demand for power for everyday use.
According to data from the Kenya National Bureau of Statistics (KNBS), during the June 2023–June 2024 fiscal year, imports from Ethiopia and Uganda overtook imports as the major external source of electricity supply.
In the first half of 2024, Ethiopia continued to be the leading external supplier of electricity supplied into the national grid, providing over 672 million Kilowatt-hours (KWh) of power.
When compared to the quantity of electricity Kenya imported from the nation during the same time period in 2023, this is an 88% increase. By comparison, Uganda’s electricity supply to the nation decreased by 24%, amounting to 106 million KWh between January and June 2024 as opposed to 141 million KWh in 2023.
Between January and June of this year, Kenya imported a total of 778 million units of power from the two nations, a significant rise from 498 million units during the same period the year prior.
Kenya is becoming a net importer of electricity from Ethiopia and Uganda due to shortages in its electrical generation.
Between January and June of this year, the nation produced about 6.098 billion KWh of electricity domestically, a 0.2% decrease from the amount produced during the same time in 2023.
Under its power exchange program, Kenya and Uganda supply each other with electricity when one nation experiences a shortage.
Kenya and Ethiopia agreed to a 25-year Power Purchase Agreement in 2022, with pricing per kilowatt set at Ksh8.6. However, the agreement will be reevaluated in 2027 when Kenya is able to revise the tariff’s parameters.
The government claimed that the tariffs were lower than those imposed by independent power producers (IPP) at the time the agreement was signed.
The agreement with Ethiopia was reached at a crucial juncture to stabilize domestic supply, particularly during the terrible drought that the nation experienced at the start of the previous year.
As part of its efforts to reduce consumer costs, Kenya is increasing its imports of electricity from its neighbors.