Kenya Greenlights 80.3 MW Olkaria VII Geothermal Power Plant to Expand National Grid by 2027
The Kenyan government has approved the construction of the Olkaria VII geothermal power plant, led by state-owned electricity producer KenGen. The project is expected to add 80.3 MW of clean energy to Kenya’s national grid by mid-2027.
KenGen plans to utilize power from 19 geothermal production wells, with the option to drill up to seven additional wells during the plant’s 25-year operational lifespan, according to Raddar Africa.
The development will be jointly financed by the governments of Kenya and Japan, alongside the European Investment Bank, with completion targeted for 2027.
KenGen’s CEO, Engineer Peter Njenga, emphasized that Olkaria VII is a cornerstone of the company’s newly launched 10-year strategic plan aimed at delivering at least 1,500 MW of renewable energy to the national grid by 2033.
Of this target, geothermal power is expected to contribute approximately 800 MW, while solar, wind, and hydro sources will supply the remainder.
Currently, Kenya’s installed power generation capacity stands at 1,726 MW, with geothermal energy representing a significant portion. The completion of Olkaria VII will help advance the country’s ambitious goal of achieving 100% renewable energy reliance by 2030.
In parallel, the Cabinet has approved Phase III of the Last Mile Connectivity Project (LMCP), which aims to connect 180,500 new households, schools, health centers, and micro, small, and medium enterprises (MSMEs) to the national grid, while strengthening Kenya’s electricity distribution network.
The LMCP will be implemented in partnership with the African Development Bank (AfDB) and the Canada-AfDB Climate Fund. The program targets persistent challenges such as high connection costs, idle transformers, and weak infrastructure, especially in rural areas.
Priority will be given to counties with low electricity access that have not previously benefited from similar initiatives, ensuring a more inclusive and equitable energy rollout.
