Updated August 26, 2025:
Geothermal exploration support in Eswatini is part of regional energy collaboration efforts aimed at expanding renewable energy development in Southern Africa. The initiative is intended to assist with early-stage geothermal resource assessment and technical capacity building.
KenGen has indicated that it will support geothermal exploration activities in Eswatini. The company also stated that the work will involve cooperation with the Eswatini Electricity Company to evaluate geothermal energy potential in the country.
The announcement follows recent geothermal drilling activities by KenGen engineers in Tanzania as part of the company’s regional technical services operations. KenGen has also been expanding into additional energy-related initiatives, including solar energy products.
According to the company, the collaboration will focus on sharing technical expertise developed through Kenya’s geothermal sector as part of broader renewable energy development efforts in the region.
Other Projects
Other than the KenGen solar power kits, KenGen is also linked to the development of a $2.9 billion gas-fired power plant near Mombasa Port.
The 1,200-megawatt facility comes at a time when increasing electricity demand needs to be addressed. The plant also signals the country’s strategic move to bolster its energy infrastructure. It is part of Kenya’s broader efforts to expand its power generation capacity and support economic growth.
Once operational, the new facility is expected to significantly contribute to the national grid, addressing the rising energy needs of industries and households. The project also highlights Kenya’s commitment to diversifying its energy sources. Furthermore, it facilitates in reducing reliance on traditional methods. As the nation continues to experience economic expansion, the demand for reliable and sustainable energy solutions becomes increasingly critical.
June 15, 2024:
Kenya’s state-owned firm, KenGen, has ventured into the manufacture of solar power kits in an aim to diversify its revenue. The Kenya Electricity Generating Company (KenGen) will commence this plan after the Public-Private partnership Directorate approved a concept note last month. The concept note cleared the way for the company to recruit advisors and establish a plant at Olkaria. The facility will commence by first assembling photovoltaic (PV) modules. Later on, it will expand to inverters and battery-storage systems. This will allow KenGen to tap surging household and business demand for cheaper, more reliable energy than the national grid.
Electricity sales to Kenya Power still deliver about 73% of KenGen’s annual revenue (Sh41.25 billion of Sh56.29 billion in the year to June 2024). However, management still seeks to court new income streams to boost its revenue. KenGen’s solar power kits promises to be an attractive avenue. Captive installations already supply 47.2% of Kenya’s self-generated power capacity, totaling 574.6 MW, as firms seek to curb costs and avoid frequent blackouts.
Also read:
KenGen’s Energy Play: A US$4.2B Gamble on Geothermal energy in Kenya
Scope of Implementation on KenGen’s Solar Power Kits
The implementation of KenGen’s solar power kits is one of the streams that the company aims to leverage to ensure diversification. Beyond panels, KenGen is pursuing carbon-credit sales, expecting $32.05 million (Sh4.14 billion) from 4.62 million Certified Emission Reductions. Furthermore, it will include regional geothermal-drilling contracts, having earned at least Sh8 billion from projects in Ethiopia and Djibouti. The firm is also eyeing work in Tanzania and Eswatini. The solar plant will target East African markets now dominated by Chinese imports, reinforcing KenGen’s pivot from a single-buyer model toward diversified, climate-aligned growth. Moreover, KenGen aims to tap a transaction advisor for the project by September, this year. The plant whose estimated cost remains undisclosed will be located in Olkaria and marks KenGen’s plans to tap into the growing demand of solar. It will also provide homes and businesses with cheap and reliable electricity compared to reliance on Kenya Power (KPLC).
Project Factsheet:
Project Name: KenGen Solar Power Kits Project
• Location: Olkaria
• Country: Kenya
• Project Type: Solar equipment manufacturing and assembly plant
• Estimated Investment Value: Not yet disclosed
Project Teams
Developer
- Kenya Electricity Generating Company – Project developer and operator.
Government Oversight
- Public-Private Partnership Directorate – Approved the concept note and PPP process.
Also read:
Legislators Hold State-Owned KenGen Accountable Over Multi-Million Stalled Power Projects
KenGen Cancels and Reopens Tender for $247.5 Olkaria VII Geothermal Plant Consultancy Work
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