electricity

Kenya’s Electricity Imports Are Becoming Increasingly Dependent on Ethiopia

Kenya’s electricity imports are heavily concentrated in Ethiopia, which supplied about 83% of all imported electricity in the year to June 2025. Kenya imported 1,533.85 GWh during the period, with Ethiopia accounting for 1,274.42 GWh, while Uganda supplied most of the remainder. The growing reliance reflects Kenya’s push to use regional power markets to supplement domestic generation and improve grid stability.

Ethiopia’s role is anchored by a 200 MW long-term power agreement, with electricity transmitted to Kenya through the Ethiopia–Kenya HVDC interconnector. A renewed agreement signed in July 2026 puts the energy charge at about US$0.155 per kWh, alongside a monthly capacity charge of roughly US$6.3–6.5 per kW. Kenya Power plans to increase imports from Ethiopia to 400 MW from December 2026, effectively doubling the contracted supply.

Uganda remains Kenya’s second significant source of imported electricity, although at a much smaller scale. Uganda supplied 225.64 GWh in the year to June 2025, equivalent to about 15% of Kenya’s total electricity imports. Exports have continued to grow, reaching 254.7 GWh between January and November 2025, while Uganda supplied about 137 GWh between January and May 2026.

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The economics of the Ethiopia deal are therefore important. Kenya does not simply pay for the electricity it consumes; it also pays for reserved transmission capacity through the monthly demand charge. At 200 MW, a US$6.3–6.5/kW monthly capacity charge represents roughly US$1.26–1.30 million a month for the reserved capacity, before the energy charge. If the contracted capacity rises to 400 MW, that capacity payment would roughly double, assuming the same rate.

The bigger story is that Kenya’s electricity system is becoming increasingly regionally interconnected. Ethiopia provides the bulk of imported power, Uganda supplies a smaller but growing share, and Kenya is using these cross-border flows alongside its domestic geothermal, hydro, wind and solar generation. The planned increase to 400 MW from Ethiopia suggests that regional imports are becoming a more permanent part of Kenya’s electricity supply strategy.

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