KenGen’s Geothermal Project Kickstarts Uprating Discussions with MPs

By Catherine Muema Last updated Apr 18, 2024

Makali Mulu, Kitui Central MP and vice chairman of public Debt and Privatization during the KenGen’s Geothermal Project Discussion

The National Assembly Committee on Public Debt and Privatization convened to discuss KenGen’s geothermal project uprating. The meeting featured Mr. Peter Njenga, Managing Director of KenGen, who provided insights into the utilization of loans acquired by the National Government for this purpose.

Project Overview:

The project involves enhancing the Olkaria I and IV Geothermal Power Stations. Construction of the 280MW Olkaria I additional units 4 and 5, as well as Olkaria IV units 1 and 2, began in December 2011. The project was successfully commissioned in December 2014.

Project Objectives:

The primary goal is to uprate existing turbines, thereby increasing their power output. Improved efficiency in utilizing geothermal resources will benefit both stations. The overall result will be an additional 40MW of power capacity.
Value for Money:

Concerns were raised about the project’s cost, estimated at EURO 57 million. Mr. Njenga assured the Committee that the uprating would yield value for money. The anticipated revenue from the additional 40MW is Kshs. 400 million annually.
Financing Details:

The KfW Development Bank of Germany expressed interest in financing EURO 45 million. KenGen will cover the remaining EURO 12 million through internally generated funds. Stay tuned for further updates as this critical energy project progresses.