Kenya Power’s Ethiopia import bill triples to Sh8bn on rising demand

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Kenya Power’s growing reliance on imported electricity is now hitting its books harder, with new data showing that billing for power purchases from Ethiopia has nearly tripled to about KSh8 billion, underscoring the cost implications of plugging domestic supply gaps.

The sharp rise reflects a deeper structural shift in Kenya’s energy mix, where imported electricity, particularly from Ethiopia, has become a critical stabiliser for the national grid.

Over recent years, imports have surged as demand grows and local generation, especially hydropower, faces constraints from weather variability and capacity limits.

Ethiopia has emerged as Kenya’s dominant external supplier, accounting for the bulk of imported electricity thanks to its relatively cheaper hydropower.

The economics behind the imports remain compelling despite the rising bill. Electricity from Ethiopia costs about KSh8.3 per unit, making it cheaper than thermal generation and helping Kenya avoid even higher electricity tariffs that would come from increased reliance on fuel-based power plants.

Source: Wikipedia