Kenya Power increases electricity imports from Ethiopia and Uganda by 56%

Data from the Kenya National Bureau of Statistics (KNBS) shows that imports from Ethiopia and Uganda emerged as the main external source of power supply during the financial year June 2023 - June 2024. 

Ethiopia retained its lead as the top external source of electricity fed to the national grid, supplying over 672 million Kilowatt-hours (KWh) of power in the first six months of 2024. 

This is an increase of 88 per cent compared to the amount of power Kenya imported from the country in the same period in 2023. 

In contrast, Uganda’s power supply to the country dropped by 24 per cent, supplying 106 million KWh from January to June 2024 compared to 141 million KWh supplied in 2023. 

In total, Kenya imported 778 million units of power from the two countries between January and June this year, a sharp increase from 498 million units in the same period the previous year. 

Deficits in generating electricity have made Kenya become a net importer of power from Uganda and Ethiopia. 

The country generated over 6.098 billion KWh of power locally between January and June this year, a slight difference of 0.2 per cent compared with the power generated during the same period in 2023. 

Kenya and Uganda have a power exchange programme whereby either country supplies the other during periods of deficits. 

In 2022, Kenya signed a 25-year Power Purchase Agreement deal with Ethiopia with the prices set at Ksh8.6 per kilowatt. The deal will, however, be reviewed in 2027 when Kenya can negotiate the terms of the tariff. 

At the time the deal was signed, the government argued that the tariffs were lower compared with the ones charged by independent power producers (IPP).

The agreement with Ethiopia came at a critical time to stabilise local supply, especially at a time when the country was suffering from severe drought at the beginning of last year. 

Kenya’s move to boost power imports from its neighbouring countries is part of the government’s efforts to lower bills to consumers.