Freeze on power purchase deals sparks fresh fears of rationing

Joseph Siror Kenya Power CEO presents the Kenya Power's Half Year Financial results announcement at Stima Plaza, Nairobi. Key Performance Highlights- 1. KSh.9.97 billion in net profit compared to KSh.319 million net profit during a similar period in the previous financial year. 2. 5% growth in electricity sales from 5,225 GWh to 5,506 GWh. 3. An additional 404 GWh of renewable energy was dispatched. 4. KSh.11.65 billion reduction in power purchase costs. 5. KSh.13 billion reduction in finance costs. Friday, 31 January 2025. [Jonah Onyango, Standard]

Kenya’s electricity demand is now threatening to outstrip available power-generating capacity in what could see the country’s sole power distributor resort to rationing. 

The growing demand is despite a near-empty pipeline of power-generating projects that are expected to come on board in the coming years and increase supply following the 2018 freeze in the signing of power purchase agreements between Kenya Power and Independent Power Producers.

The country recorded a new peak demand of 2,304 megawatts (MW) on January 15 this year, sustaining the trend over the last two years when the country has recorded a new peak demand every few months.