Kenya Power fast‑tracks talks with 54 producers after Parliament lifts freeze on PPAs
The move to resume talks comes as Kenya faces tighter local supply and increased reliance on electricity imports from Ethiopia and Uganda.
Kenya Power is moving swiftly to finalise new electricity supply deals that could bring an additional 1,112 megawatts (MW) of power to the national grid, following Parliament’s removal of the long-standing freeze on new power purchase agreements (PPAs).
The utility had been holding preliminary talks with multiple producers, but progress slowed as lawmakers paused approvals for new deals.
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According to a briefing from Energy and Petroleum Cabinet Secretary Opiyo Wandayi, negotiations with 54 power producers are ongoing, with several scheduled for follow-up discussions in the coming weeks.
The moratorium, which lasted seven years, was intended to give Parliament time to review existing contracts, many of which have been linked to high electricity costs.
The move to resume talks comes as Kenya faces tighter local supply and increased reliance on electricity imports from Ethiopia and Uganda.
Most of the planned plants are small hydro projects, while the remainder includes solar and wind installations.
The largest proposals are two wind farms, each capable of producing 100MW.
“KPLC started engagement on PPAs with 65 generation projects totalling 1,112 MW, the majority of which are small hydro-power projects,” the briefing notes state. “The developer shared a marked-up draft PPA and updated the financial model.”
Kenya Power noted that the initial drafts presented by one developer showed major differences from the company’s positions.
“However, the mark-up showed that the developer disagreed with most of KPLC’s positions. The developer was requested to share a matrix of issues and their final positions on these issues before the team resumes PPA drafting. A meeting has been scheduled with the developer for November 2025,” the utility said.
Four additional wind farms, each rated at 50MW, are also part of the discussions. These are being developed by Chania Green, Sub-Saharan Wind, Prunus Energy Systems, and Aperture Green.
One of the 100MW wind plants will be built in Meru County by Hewani Energy, a joint venture between South Africa’s Seriti Green and Japan’s Eurus Energy, while the other belongs to Kipeto Energy, which already has an existing PPA with Kenya Power.
The PPA freeze had slowed most negotiations, leaving local generation struggling to meet rising demand.
Over the past four years, imports of electricity have increased sharply, now supplying 10.6 per cent of the national grid, 1.53 billion kilowatt-hours (kWh) in the year to June 2025, up from 4.87 per cent a year earlier and just one per cent in 2021. Imported electricity has helped prevent wider power cuts during peak hours from 5:00 pm to 10:00 pm.
Power rationing is applied when demand exceeds available generation capacity to avoid overloading the grid.
With the moratorium lifted, Kenya Power is expected to accelerate talks to ensure new plants come online without further delay.
Building a power plant typically takes at least one and a half years, making timely negotiations essential to avoid a deeper supply gap. Meetings with developers last month indicate many are pushing for financial closures to start construction as soon as possible.
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