Last Updated: Aug 20, 2025
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Kenya Secures €55 Million Loan for Gogo Hydropower Plant Redevelopment

Home » Energy » Hydropower » Kenya Secures €55 Million Loan for Gogo Hydropower Plant Redevelopment

Germany has inked a financing deal with Kenya to support the Gogo Hydropower Plant Redevelopment Project.

Gogo Hydropower Plant is located in Migori County. Additionally, the hydropower project is expected to spark economic growth in Western Kenya.

Gogo Hydropower Plant Factsheet

Location: The plant is situated on the Kuja River in Migori County.

ommissioning: 1958

Original installed capacity: 2 MW

Original operator: Macalder Mining Company

Current operator: Kenya Electricity Generating Company PLC (KenGen)

Redevelopment project:

  • Project goal: To upgrade and modernize the plant to increase its electricity generation capacity and improve reliability.
  • New capacity: The project aims to increase the installed capacity from 2 MW to 8.6 MW.
  • Projected completion: The redevelopment is expected to take 30 to 36 months from its approval.

Scope of redevelopment: The project will include:

  • Desilting the dam.
  • Raising the dam level by 1.5 meters.
  • Construction of a new powerhouse with two vertical turbine generators.
  • Building a new 66/33 kV substation and a dedicated 29.9 km transmission line to the Awendo Substation.
  • Construction of a new water tunnel and intake structures.

Funding according to the Agreement

According to Treasury Cabinet Secretary (CS) John Mbadi, the agreement is inclusive of a €35 million (Ksh5.3 billion) sovereign loan from the German government. Also, it includes a €20 million (Ksh3 billion) grant from the European Union (EU). Therefore, the total package is €55 million (Ksh8.3 billion).

According to the CS, the funds will be utilized to modernize and expand the Gogo Hydropower Plant. This will foresee an increase in the plant’s generation capacity from 2 megawatts to 8.6MW.

Significance of Gogo Hydropower Plant Redevelopment

Further, the expansion will help stabilize energy supply across Migori and surrounding counties. In these regions that will benefit from the plant’s upgrade, they usually have frequent outages and limited capacity in households, small businesses, and industries for decades.

Furthermore, Mbadi stated that the redevelopment of the Gogo plant was long overdue. Also, he noted that the hydropower facility was first built in the 1950s and has struggled to meet modern energy demands.

Generally, the upgraded plant will support the government’s plan to decentralize industrial growth beyond the cities of Nairobi and Mombasa.

Kenya Moves Forward with Green Energy Projects

With Gogo Hydropower Plant redevelopment coming in, the facility joins Kenya’s green energy projects that the government is seeking to develop. In another green energy project, the Olkaria I upgraded facility is expected to start operations next year. These projects are key in the government’s agenda of rural electrification as they will bring a boost to making this a reality. Also, other green energy projects that Kenya is seeking to develop include the 42MW Seven Forks Solar Project.

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