Since some of the electricity supply agreements went into effect, 8.77% of the nation’s energy needs during the reviewed year came from imported power. Kenya Power fulfilled its power purchase agreement with the Ethiopia Electricity Power Company (EEP), resulting in a peak in power imports between June 2016 and December of 2023.
As per the agreement, the Ethiopian company will become Kenya Power’s second-largest power supplier after KenGen once the EEP provides the utility provider with 600 MW of electricity for 25 years. January 2024 saw the largest import, totaling 142.25 GWh. The start of full commercial operations under the power purchase agreement between KPLC and EEP, which started on December 1, 2023, is responsible for the increase from December 2023, the regulator stated.
EEP will supply Kenya Power with 200 MW for the first three years, then increase the supply to 400 MW for the remaining time. Additionally, Kenya Power’s energy exchange agreements with the Uganda Electricity Transmission Company Limited (UETCL) increased the company’s purchases of electricity in FY 2023/2024.
Ethiopia continues to be Kenya’s largest market for electricity exports, with annual growth of 88%. However, the amount of power imported from Uganda has decreased from 141.23 million KWh in 2023 to 106 million KWh this year.
The amount of power imported in the fiscal year 2022–2023 was 644 GWh. When imports were 337.50 GWh in 2021–2022, this was double the amount. From this data, it was implied that Kenya will import a lot more electricity from its neighbors as the need for electricity increased in the near future.
Kenya continues to demand more electricity at peak hours than its neighbors in East Africa. Kenya consumed 2,177 MW in 2023–2024, followed by Tanzania and Uganda, with 1,645 MW and 1,033 MW, respectively, according to the most recent data from EPRA. Burundi used the least amount of power during the review period, using only 70 MW.
The installed capacity in East Africa increased by 24% in 2023–2024, from 6,957.8 MW in June 2023 to over 8,000 MW in June of this year. Uganda’s installed capacity increased from 1,609 MW in June 2023 to 2,430 MW this year, representing the largest rise. By June of this year, Kenya’s installed capacity had increased somewhat from 3,084.65 MW in June 2023 to 3,199 MW.
The 600 MW Karuma Hydroelectric Dam’s commissioning is responsible for Uganda’s growth, while the 2,120 MW Julius Nyerere Hydroelectric Power Project’s phased commissioning is responsible for Tanzania’s expansion, the research continued.
With 88% of its total capacity coming from renewable energy, Uganda also held the top spot in the area. Burundi ranked third with 78%, and Kenya came in second with 79.89%. With 45% and 43% of renewable energy, respectively, Tanzania and Rwanda trailed behind.
