Kenya and Ethiopia deepen cross-border energy integration as Kenya Power signs an agreement to double electricity imports to 400 MW by December 2026
By Staff Writer
(NAIROBI, Kenya) — Kenya Power renewed its electricity supply agreement with the Ethiopian Electric Utility in July 2026, doubling the contracted power supply from 200 megawatts (MW) to 400 MW. The additional electricity supply will begin reaching the Kenyan grid in December 2026, according to official notices released by Ethiopian Electric Power (EEP).
The renewed cross-border energy framework addresses surging domestic demand in Kenya. Kenya Power reported selling 12,792.42 gigawatt-hours (GWh) in the fiscal year ending June 2026—a 12.2 percent annual increase from 11,403 GWh the previous year, marking the utility’s sharpest consumption growth in four years.
Peak power demand in Kenya reached a record 2,549 MW on July 15, 2026, driven by a growing customer base that expanded to 10.4 million following 411,710 new network connections over the past year.
Electricity imports from Ethiopia increased to 1,584.45 GWh during the year ending June 2026, representing approximately 10 percent of Kenya Power’s total grid supply, up from 1,268 GWh (8.7 percent) the prior year.
Kenya has positioned itself as Ethiopia’s largest international electricity customer, outpacing both Sudan and Djibouti as import volumes grew more than fivefold since early 2022. Kenyan payments for Ethiopian power imports reached nearly 8 billion Kenyan shillings (roughly $62 million) in the year to mid-2025, prior to the introduction of updated pricing schedules.
The revised pricing structure will expand Ethiopia’s export revenues. Kenya generated 15.62 billion Birr for Ethiopian Electric Power during the 2025/26 fiscal year, establishing power exports to Kenya as EEP’s third-largest revenue segment behind domestic data mining operations and local public distribution.
Combined power sales to Kenya and Djibouti generated 21.13 billion Birr for EEP over the same fiscal period, supported by total annual generation deliveries of roughly 1,589 GWh to Kenya and 546 GWh to Djibouti.
Cross-border transmission relies on the 1,045-kilometer High Voltage Direct Current (HVDC) line linking Wolayta Sodo in southern Ethiopia to Suswa in central Kenya. Completed in 2022 at a cost of $1.26 billion, the high-voltage corridor boasts a total transfer capacity of 2,000 MW.
Even with contracted supply doubling to 400 MW, cross-border flows utilize only one-fifth of the line’s maximum capacity, leaving significant headroom for future regional power integration.
Kenya Power Chief Executive Joseph Siror stated that the utility remains focused on securing reserve margins through expanded generation access. Meanwhile, the Kenyan National Treasury outlined long-term plans to add 10,000 MW of domestic generation capacity over the next seven years to balance regional imports with domestic power security.
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The is the right thing to do for our Kenyan brothers and sisters.