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The AfDB-approved geothermal project will expand Kenya’s baseload power while lowering electricity costs nationwide.
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The Menengai development will cut emissions, reduce reliance on diesel, and accelerate Kenya’s transition to clean energy.
The African Development Bank Kenya clean energy transition received a major boost after the Bank approved a $16.5 million loan for geothermal development. This funding will support the 35 MW OrPower Twenty-Two Geothermal Power Plant in the Menengai geothermal field. Consequently, the project will strengthen baseload power supply while accelerating Kenya’s shift towards sustainable energy. Moreover, it will expand reliable generation capacity while lowering long-term electricity costs for households and industries.
The project developer, OrPower Twenty-Two Limited, operates as an Independent Power Producer in the Menengai field near Nakuru Town. Strategically, the site lies about 180 kilometres northwest of Nairobi, which improves national grid integration. Furthermore, the plant will become the third facility in the geothermal field. It will complement the operational Sosian Menengai plant and the under-construction Globeleq Menengai project. Together, these plants will unlock 105 MW from the first development phase.
Earlier, the African Development Bank financed the Menengai field through a $145 million facility to the Geothermal Development Company. As a result, the field now provides sustainable steam resources for private power generation. The government-owned company will supply steam to the new plant. Meanwhile, Kenya Power and Lighting Company will act as the sole off-taker under a 25-year Power Purchase Agreement. Therefore, the project guarantees stable revenue flows and long-term grid reliability.
Beyond capacity growth, the plant will deliver affordable baseload power at one of Kenya’s lowest tariffs. Consequently, electricity prices will decline across the national grid. When operational, the plant will generate about 301 gigawatt hours of clean energy each year. In addition, it will strengthen supply stability and reduce diesel dependence. It will also avoid about 1.9 million tonnes of greenhouse gas emissions over the contract period.
Financially, the AfDB loan complements funding from the International Finance Corporation. Together, these facilities will raise total project debt to $64.4 million. The total project cost stands at $91.9 million. Therefore, international finance will continue to drive Kenya’s renewable energy expansion.
Importantly, the project supports Kenya’s Mission 300 Energy Compact. It also advances national targets to raise geothermal capacity to 1,824 MW by 2030. As a result, the AfDB Kenya Clean Energy Transition Strategy will strengthen energy security and climate resilience.