Rationing fears linger as electricity demand hits fifth peak in a year

Kenya Electricity Generating Company PLC Managing Director Peter Njenga.

Photo credit: File I Nation Media Group

The peak demand for electricity hit a new high of 2,418.77 Megawatts (MW) in November—the fifth such feat this year alone, turning the spotlight on the country’s ability to meet the fast-rising demand or risk rationing of supplies.

KenGen Managing Director Peter Njenga disclosed that the peak was recorded last month, upstaging the previous high of 2,411.98MW recorded in October.

The fast-rising demand looks set to pile pressure on the country’s ability to generate sufficient power locally to match the rise in consumption amid a deepening reliance on hydropower from Ethiopia and Uganda to boost supplies.

Kenya Power is racing to ensure enough electricity supplies as industries and homes consume more amid a surge in the number of connections.

“National power consumption reached record highs in November as peak demand climbed to 2,418.77MW and energy dispatch hit 44,555.80 Megawatt-hours, underscoring increased industrial activity,” Mr Njenga said yesterday at the firm’s Annual General Meeting.

The peak demand has jumped by 102.77MW since the start of this year, from the 2,316MW recorded in February. Peak demand refers to the time of the day or night when electricity consumption is highest. 

It mainly occurs when industries are operating at peak, and many people are using appliances and devices simultaneously.

The surge in electricity demand exerts pressure on the local production of electricity from geothermal and hydro, which has nearly stagnated, forcing Kenya Power to tap more imports from Ethiopia, Uganda, and Tanzania amid power rationing.

Kenya Power has been forced to ration some parts of the country from as early as 1700hours to avert a scenario where the grid can collapse due to a mismatch in demand and supply.

Geothermal and dams are the mainstay of the national grid, but production from these sources grew marginally in the year ended June 2025.

Hydropower generation from local sources grew three percent to 3,504Gigawatt-hours (GWh) in the period from 3,396GWh a year ago, while geothermal grew at less than one percent to 5,718GWh from 5,707GWh in the same period.

Electricity imports surged fastest to 1,534GWh from 1,199GWh, reflecting a rise of 28 percent in the same period.
In recent months, both the Kenya Power and Lighting Company Plc (KPLC) and President William Ruto have acknowledged that, without additional capacity, load shedding will be necessary to balance the system.

Parliament last month, however, voted to lift a ban on new power purchase agreements, raising hope of new generation projects.

“The lifting of the moratorium marks a decisive reopening of Kenya’s power generation pipeline and reflects the government’s urgency to address supply deficits and growing demand. Its practical impact, however, will hinge on how quickly the new conditions, particularly the shift to competitive procurement, are implemented,” Aleem Tharani and  Edwin Baru, Partners, and Beatrice Ngunyi, Associate, at law firm Bowmans Kenya, said in a commentary.

Kenya Power buys hydropower from Ethiopia under a 25-year deal. The firm also has power exchange deals with Uganda and Tanzania, where the net importer pays at the end of a defined period. 

Kenya inked a deal to import electricity from Ethiopia from November 2022, with the power priced at $0.065 (Sh10.2) per kilowatt, but Kenya is keen to exercise a clause in the contract that allows for tariff renegotiation from 2027 at the earliest.

Kenya has been the main importer in the two deals with Uganda and Tanzania, highlighting the country’s local generation woes.

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