Electricity consumption surges, pushing Kenya’s grid to record levels
The trend has prompted major producers, including the Kenya Electricity Generating Company (KenGen), to boost output to keep pace with consumption.
Kenya’s electricity generation set a new record in August as demand from households, industries, and businesses surged.
The Energy and Petroleum Regulatory Authority (EPRA) reported that locally generated and purchased power reached 1,291.39 million kilowatt-hours (kWh), the highest ever in the nation’s history.
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This marked an increase from July’s 1,284.28 million kWh, reflecting the country’s growing energy needs.
Earlier in the year, Kenya Power recorded historic sales of 1,090.88 million kWh in June, while the Kenya National Bureau of Statistics indicated that sales first exceeded 1,000 million kWh in May.
The trend has prompted major producers, including the Kenya Electricity Generating Company (KenGen), to boost output to keep pace with consumption.
A rise in industrial activity alongside the expansion of household connections has intensified pressure on the national grid. Sectors such as manufacturing, construction, and transport have scaled up operations, leading to higher electricity use.
In addition, programmes to extend electricity to rural areas and last-mile connections have further increased demand.
Kenya continues to rely heavily on renewable energy, with geothermal and hydropower plants leading production, supported by wind and solar energy.
Despite this, the rapid rise in consumption has lowered the reserve margin of the system’s backup capacity to just four per cent, leaving the grid more prone to interruptions.
To cope, the country has imported additional power from Ethiopia, though Kenya Power has warned that the low reserve margin could trigger electricity rationing.
Peak electricity demand, the highest load recorded on the grid annually, has been steadily rising.
It reached 2,177 MW in the year ending June 2024, up from 2,149 MW the previous year, and from 1,926 MW five years ago. The daily evening peak typically occurs between 7:30 pm and 8:30 pm, placing extra stress on the system.
In the first half of last year, KenGen accounted for 59.94 per cent of the 7,717.61 GWh produced, followed by imports at 10.48 per cent, Lake Turkana Wind Power at 10.24 per cent, and Orpower at 5.78 per cent.
Future growth in electricity supply has been slowed by a freeze on new power purchase agreements (PPAs), which has blocked construction of new plants and renewal of expiring contracts.
The freeze began in 2021 following recommendations from a task force appointed by former President Uhuru Kenyatta to review power deals and propose ways to reduce electricity costs.
Although the Cabinet lifted the restriction in March 2023, Parliament refused to endorse the decision, demanding assurances from the Energy Ministry on how consumers would be shielded from high costs imposed by independent producers.
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