Updated November 5, 2025- The International Finance Corporation (IFC) is expected to provide a $48 million loan (Ksh6.2 billion) that will be utilized to partially finance the construction of the OrPower 22 Geothermal Power Plant in Menengai, Nakuru County.
Crucially, the IFC requires the project to adhere to its stringent Performance Standards (PS) on Environmental and Social (E&S) Sustainability, providing necessary guidance to ensure the development of this baseload clean energy source. The clean energy generated from the geothermal power plant is considered as vital for improving Kenya’s grid reliability and reducing reliance on fossil fuels. Furthermore, the development of the geothermal power plant is in line with global best practices especially in addressing E&S risks inherent in the geothermal project’s location within a public forest reserve and its cumulative impact alongside two adjacent power plants.
The project’s developer, Kaishan Group, also seeks to set up a fertilizer producing plant in the region that will be powered fully by geothermal energy. The availability of geothermal energy in Menengai makes the place a suitable place for setting up industries due to availability of power. Other than the fertilizer producing plant, Aquilastar also seeks to set up an EV plant in the area with the support of a UAE-based investor.
Reported on October 28, 2024
In a quest that is set to place Kenya as the 5th largest producer of geothermal energy in the world, the Orpower 22 Geothermal Power Plant project has just broken ground in Nakuru county which is located some 200 kilometers northwest of the country’s capital Nairobi. This project was broken ground by the country’s president H.E William Samoei Ruto.
This project will be executed at a total cost of $90 million under a public-private partnership involving Kenya and Shangai-based Kaishan group. Additionally, it will be executed within a 17-month period.
Project Factsheet
Name: Orpower 22 Geothermal Power Plant
Capacity: 35MW
Cost: $90 million
Developer/Contractor: Kaishan group
Construction period: 17 months
Significance: boost Kenya’s green energy transition, boost climate resilience and generally stimulate economic growth.
Also read: KenGen Issues Multi Billion Olkaria I Rehabilitation Contract
The Orpower 22 Geothermal Power Plant is expected to boost Kenya’s green energy transition, boost climate resilience and generally stimulate economic growth.
Kenya’s president stated, “The construction of this geothermal power project acts as a signal of the country’s commitment to achieving the historic goal of a national electricity power grid that is 100% green by the year 2030.”Furthermore, it highlights the commitment of Kenya to unlocking and utilising its vast geothermal resources.” He also pointed out that Kenya has an enabling and friendly environment that is suitable for private sector. The private investors can put investments in sources of renewable energy like solar, geothermal, and even wind.”
Current State of Affairs of Kenya’s Geothermal Energy
Currently, Kenya boasts a total of 950MW of geothermal energy out of its overall impressive 10,000MW geothermal potential. As revealed by Ruto, the private investors like Kaishan will be very instrumental in the exploitation and utilisation of geothermal energy in the country.
Currently, Kenya stands as the 6th largest geothermal power producer in the world. It is also quite interesting to note that geothermal energy accounts for 50% of the country’s national power mix.
Moreover, the president said, “Upon the completion of the 35MW Orpower 22 Geothermal Power Plant, Kenya will rise to 5th place in global ranking. This project is also set to ensure that Kenya’s economic development is both green and inclusive.”
“Indeed, Kenya is quite committed in ensuring it achieves a clean national grid and also speeding up the progress towards attaining net zero targets. These commitments are totally guided by the progressive regulatory measures along the targeted investments,” the president commented.
Kaishan Group to Assist Kenya in its Zero Carbon Industrialization Endeavor
According to Yan Tang who is the general manager of the Kaishan group, stated “Through the partnership with the Government of Kenya and local communities, the company looks forward to implementing geothermal and green hydrogen projects, thereby spearheading zero carbon industrialization in the country.”
“Via all these undertakings, we are not only pursuing green energies but also creating jobs. This will lead to a more positive economic impact to the local communities,” Yan commented.
Another project that was undertaken by the Kaishan group is the 35MW Sosian Menengai Geothermal Power Plant. This project has been supplying Kenya’s national grid since it was completed in the year 2023. This project has also been quite pivotal in accelerating Kenya’s green energy transition.
Also read: The 80.3Mw Olkaria VII Geothermal Power Plant Project in Kenya
