• Kenyaplans to build a 1.2-gigawatt gas-fired power plantat Dongo Kunduin Mombasa.

• The project could require $2.9 billion in investmentand involve KenGenand private investors.

• Kenya recorded a peak electricity demand of 2,439 MW in December 2025, highlighting rapidly rising power consumption.

Authorities in Kenya seek transaction advisers to structure and develop a large gas-fired power project as electricity demand continues to rise.

According to information reported on March 11 by Bloomberg, which cited Alex Wachira, principal secretary for energy, the planned facility will have a generation capacity of 1,200 megawatts (1.2 GW).

The project will require an estimated $2.9 billion in total investment. The plant will be located in Dongo Kunduin the coastal city of Mombasa.

State-owned electricity producer KenGenwill develop the project in partnership with private investors.

Meeting Rising Electricity Demand

Kenya plans to use the new plant, which will operate on imported liquefied natural gas, to strengthen electricity supply and meet rising demand.

State electricity distributor Kenya Power and Lighting Companyreported a record peak demand of 2,439.06 MW on December 4, 2025. The figure surpassed the previous record of 2,418.77 MW recorded on November 18, 2025.

Data from the African Development Bankshow that Kenya’s peak electricity demand has increased by nearly 35% since 2018.

Authorities attribute this growth to the expansion of household connections, national electrification programs and rising residential energy consumption. In addition, industrial growth and urbanization increase electricity demand to power factories, services and infrastructure. Consequently, the government aims to develop new generation capacity to complement existing power installations.

Data from the Energy and Petroleum Regulatory Authorityshow that Kenya’s installed electricity capacity reached 3,840.8 MW as of June 2025, including 3,192 MW connected to the national grid.

Geothermal energy leads the country’s power mix with 25.9% of installed capacity.

Hydropower accounts for 24%, thermal plants represent 17.2%, solar photovoltaic capacity represents 14.1%, and wind power contributes 12%.

Strengthening Power Transmission

At the same time, the Kenyan government aims to improve electricity transmission to major consumption centers to reduce recurring power outages. Authorities target 15,000 MW of installed capacity by 2030.

In December 2025, the country signed a $311 million agreementto develop two high-voltage transmission lines under a public-private partnership. The agreement involves state-owned transmission company Kenya Electricity Transmission Companyand a consortium including Africa50and Power Grid Corporation of India.

Technically, the first line will secure the evacuation of about 300 MW of geothermal powerfrom the Baringo-Silaligeothermal fields, which represent a growing component of Kenya’s energy mix.

Meanwhile, the second line will extend the high-voltage network to western Kenya for the first time. The project aims to reduce voltage drops and technical losses in a region that has historically experienced frequent power supply instability.

Earlier in February, Kenya Power and Lighting Companyannounced an investment program of nearly 1 billion Kenyan shillings ($7.7 million)to modernize and expand electricity infrastructure in western Kenya.

The initiative targets improved grid reliability and aims to support economic activity in the region. The plan covers 11 counties, including Kisumu, Homa Bay, Migori and Kakamega. Authorities plan to build new transmission lines and complete ongoing electricity projects under the program.

Espoir Olodo