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Kenya's reliance on imported electricity has significantly increased, with imports now capturing a larger share of the national energy mix and impacting local power producers. This shift is driven by cost-effectiveness and efforts to meet growing demand and enhance grid stability.
Kenya's electricity imports have seen a substantial surge in recent years, increasingly displacing power generated by local producers, including the Kenya Electricity Generating Company (KenGen). This growing reliance on external sources is primarily attributed to the cost-effectiveness of imported power and its role in bolstering grid stability during peak demand periods.
Data from the Energy and Petroleum Regulatory Authority (EPRA) indicates that electricity imports jumped by 27.8 percent in the year leading up to June 2025. Imports rose to 1,533.85 GWh from 1,199.80 GWh in the previous year. This pushed the share of imports in Kenya's energy mix to 10.6 percent, up from 8.8 percent a year earlier, making it the fastest-growing energy source during this period.
The significant increase in imports is largely due to the full commercial operation of the 200 MW high-voltage direct current (HVDC) interconnector linking Ethiopia and Kenya, which became operational in December 2023. Ethiopia has emerged as Kenya's primary source of imported electricity, supplying 1,274.42 GWh, or 83 percent, of Kenya's total imports in the year to June 2025. Uganda and Tanzania also contributed to Kenya's imports, providing 225.64 GWh and 33.79 GWh, respectively, during the same period.
The Kenya National Bureau of Statistics (KNBS) reported a decline in local electricity generation from 1,098.9 million kilowatt-hours (KWh) in July 2024 to 1,096.2 million KWh in August 2024. Concurrently, electricity imports rose from 106.0 million KWh to 131.1 million KWh in the same period. Overall electricity generation and imports increased from 1,204.9 million KWh in July 2024 to 1,227.3 million KWh in August 2024.
The Energy and Petroleum Regulatory Authority (EPRA) has proposed draft Energy Electric Power Undertaking Licensing Regulations of 2024, which aim to allow private entities in the electricity distribution sector to import power from neighboring countries. This move is intended to foster competition and reduce wholesale tariffs, thereby enhancing service delivery and potentially lowering power costs for consumers. Currently, only Kenya Power is authorized to enter into electricity import agreements with foreign producers.
Key stakeholders in Kenya's energy sector include the Kenya Power and Lighting Company (KPLC), EPRA, Kenya Electricity Transmission Company (KETRACO), and KenGen. KenGen is the leading local power generator, producing approximately 60% of the electricity consumed in the country, utilizing hydro, geothermal, thermal, and wind sources. KPLC is responsible for transmission, distribution, and retail sales, managing power purchase agreements with KenGen and Independent Power Producers (IPPs). EPRA is the independent statutory body regulating the energy and petroleum sectors.
Analysts suggest that the increased reliance on imports could influence public debate and policy execution, with stakeholders calling for greater clarity on timelines, costs, and safeguards associated with these imports.
While imported electricity offers cost benefits and enhances grid stability, increased reliance on external sources could pose long-term risks to energy security and the viability of local power producers. Fluctuations in global fuel prices and geopolitical tensions have historically impacted electricity costs in Kenya. The government's commitment to achieving 100% clean energy by 2030, with significant investment in renewable sources like geothermal, solar, and wind, aims to reduce dependence on fossil fuels and enhance energy security.
The long-term impact of increased electricity imports on the development and expansion of Kenya's domestic renewable energy projects remains to be fully seen. The specific costs and benefits of the proposed private sector involvement in electricity importation and distribution also require further analysis.
Observers will be keenly watching the implementation of the proposed Energy Electric Power Undertaking Licensing Regulations of 2024 and their impact on competition and consumer tariffs. The ongoing negotiations to increase import capacity from Ethiopia by an additional 50–100 MW will also be a key development to monitor. Furthermore, the government's strategy to balance cost-effective imports with the growth of local renewable energy generation will be crucial for Kenya's long-term energy independence and sustainability.
Kenya's energy mix predominantly consists of green energy, with geothermal, hydro, wind, and solar accounting for 85% to 90% of generation in 2023. Geothermal remains the most significant source, with an estimated potential of 10,000MW. The country's aggressive electrification program has led to a national electricity access rate of 84%, with a goal of universal access by 2030.
