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As frequent outages expose the fragility of the national grid, KenGen turns to Olkaria’s steam and foreign tech to stabilize power and lower food prices.
It is a bitter irony known to every Kenyan: we live in a country powered by the Rift Valley’s steam and the Turkana wind—boasting one of the greenest energy grids on Earth—yet we still eat dinner in the dark. Despite over 80 percent of our power coming from renewable sources, reliability remains a ghost in the machine.
Now, the government is betting on a new frontier to fix this paradox: Green Hydrogen. In a move that signals a shift from mere generation to strategic stability, Kenya is partnering with European allies to deploy hydrogen technology not just as a fuel of the future, but as a cure for the chronic intermittency crippling the present.
The urgency is palpable. Recent months have seen Nairobi and key industrial hubs plunged into darkness with frustrating regularity. The Energy and Petroleum Regulatory Authority (EPRA) admits that while generation capacity is high, the aging transmission network struggles to cope with a demand growing at 6.5 percent annually.
Enter the Green Hydrogen Strategy. At its core, the plan involves using Kenya’s abundant geothermal energy at Olkaria to split water into hydrogen and oxygen. This hydrogen can store energy, stabilize the grid during peak demand, and crucially, power industrial processes that currently drain the national network.
The initiative is gaining serious financial muscle. KenGen is spearheading a massive 100MW Green Hydrogen plant at Olkaria, a project valued at approximately KES 17 billion (USD 132 million). The venture is backed by concessional financing from Germany, a testament to the global stakes involved.
Adding to this momentum, Estonian Ambassador to Kenya, Daniel Schaer, emphasized today that Nairobi cannot walk this path alone. Speaking on the sidelines of the energy talks, Schaer noted that technology transfer is vital.
“The global green transition cannot succeed through isolated national efforts,” Schaer said. “It requires partnerships that combine technology, innovation, and practical implementation across borders.”
To this end, a KES 26.4 million programme is being rolled out in partnership with the Global Green Growth Institute (GGGI) to operationalize Kenya’s national hydrogen roadmap by the end of 2025.
For the common mwananchi, the impact of this technology extends beyond the light switch to the grocery basket. Currently, Kenya imports 100 percent of its nitrogen fertilizer, spending over KES 65 billion (USD 500 million) annually. This leaves farmers vulnerable to global price shocks and weakens the shilling.
The new hydrogen capacity is designed to produce green ammonia—the key ingredient in fertilizer. By producing this locally, Kenya aims to:
While the hydrogen hype is real, experts warn it is not a silver bullet. The shiny new plants at Olkaria must be matched by unglamorous upgrades to the transmission lines that carry this power. Without fixing the "wires," even the cleanest energy will struggle to reach the consumer.
As Energy Cabinet Secretary Opiyo Wandayi has previously noted, the goal is to turn Kenya into a global hub for clean energy exports. But for the family in Eastlands or the factory owner in Industrial Area, the metric of success is simpler: a light bulb that stays on.
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