State-owned power producer Kenya Electricity Generation Company (KenGen) has laid out an ambitious plan to expand its renewable energy development pipeline to 5,500 megawatts, funded through several sources including public-private partnerships (PPPs) and bonds.
KenGen currently operates an installed generation capacity of 1,786 megawatts. The new plan is more than three times the 1,500 megawatts target unveiled last September in its 10-year G2G 2034 Strategy.
“As opportunities have expanded, so too has our ambition. We have strategically recalibrated our long-term growth trajectory from 1,500 megawatts to a 5,500 megawatts renewable energy development pipeline, reaffirming our commitment to powering Kenya’s sustainable economic transformation,” Managing Director Peter Njenga said in a statement.
In the earlier plan, KenGen said it would add 1,500 megawatts of renewable energy generation and deploy 500 megawatt-hours (MWh) of battery energy storage by 2034 at an estimated cost of $4.3 billion (Sh556.8 billion).
The company has not disclosed a revised cost estimate for the expanded project pipeline.
KenGen said the recalibration is due to changes in the operating environment, including new power generation opportunities, evolving national energy priorities, increased investor confidence in renewable energy and growing regional demand for clean power.
KenGen’s current 1,786 megawatts of capacity comprises 826 megawatts from hydropower, 754 megawatts from geothermal, 180 megawatts from thermal plants, and 26 megawatts from wind.
The ambitious pipeline includes a planned 2,000 megawatts of nuclear power, more than 700 megawatts of hydropower, and increased geothermal development opportunities, alongside investments in solar and wind energy.
KenGen said it is still pursuing the $4.3 billion financing plan announced under its original strategy.
It plans to fund the expanded pipeline through a mix of concessional funding, PPPs, bonds, special purpose vehicles (SPVs) and equity issuance.
“Secure sustainable financing of $4.3 billion; blend traditional and innovative financing models; mobilise concessional funds and public-private partnerships; allocate budget for transaction and advisory costs related to bonds, SPVs and equity issuance,” said the power producer.
The company is also proceeding with plans to deploy 500MWh in battery energy storage systems (BESS) to improve energy storage capacity and enhance grid stability.
The BESS are key in supporting grid reliability as more intermittent renewable energy sources are integrated into the national electricity network. Frequent power interruptions have pushed many households and businesses to install solar systems and battery storage as backup electricity sources.
KenGen’s investment comes as electricity demand in Kenya rises. The company increased electricity generation to 7,805 gigawatt-hours (GWh) in the six months to December 2025, up from 7,210GWh in a similar period a year earlier.
However, it reported a 20.2 percent decline in net profit to Sh4.22 billion for the six months, from Sh5.29 billion in a similar period in 2024 due to a larger tax bill and reduced income from cash investments.
Kenya is targeting achieving 100 percent renewable electricity generation by 2030.
