Ethiopia Solidifies Role as Central Energy Hub with Landmark Kenya Power Deal
Ethiopia and Kenya have signed a new cross-border electricity supply agreement to strengthen regional energy integration. The deal solidifies Ethiopia's role as a major renewable energy hub in East Africa, supported by its Grand Ethiopian Renaissance Dam.
Why it matters
This agreement enhances regional grid reliability and economic cooperation, serving as a model for cross-border infrastructure development in Africa.
The Ethiopian Electric Utility (EEU) and the Kenya Power and Lighting Company (KPLC) have signed a cross-border electricity supply agreement designed to strengthen bilateral electricity trade, improve power access for border communities and accelerate East Africa's energy integration.
The agreement builds on an already significant energy relationship, with Ethiopia supplying about 10% to 11% of Kenya's daily electricity consumption, making it Kenya's second-largest electricity supplier after state-owned generator KenGen.
Among Kenya's imported electricity, Ethiopia accounts for roughly 83%, with Uganda and Tanzania providing the remainder.
The agreement was signed by EEU CEO Getu Geremew and KPLC Managing Director and CEO Dr. Joseph Siror, the EEU said in a media statement on Saturday.
Under the new terms, Kenya Power will purchase electricity from Ethiopia at a rate of $0.15 per kilowatt-hour, plus a monthly demand charge of $6.30 per kilowatt.
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