Nairobi — Kenya’s government is embracing public-private partnerships (PPPs) to boost the country’s electricity generation capacity to 10,000 megawatts (MW) by 2032. This initiative is part of a broader strategy to leverage PPPs in infrastructure and irrigation projects, aiming to support industrial growth and food security. President William Ruto emphasized the crucial role these partnerships will play in scaling up investment in power generation and modern infrastructure.
During a meeting with a United Arab Emirates (UAE) delegation in Nairobi, President Ruto outlined plans to deepen investment partnerships in infrastructure and energy. The discussions focused on expanding Kenya’s energy generation capacity to 10,000 MW over the next seven years. The President also expressed commitment to strengthening bilateral relations with the UAE through enhanced trade, investment, and economic cooperation under the Comprehensive Economic Partnership Agreement (CEPA).
The initiative includes the development of 50 mega dams under PPP arrangements to enhance irrigation and food production. This move follows President Ruto’s remarks during his visit to Qatar, where he highlighted Kenya’s limited power supply as a significant constraint to attracting foreign direct investment. The country’s current installed capacity stands at 3,192 MW, according to data from the Energy and Petroleum Regulatory Authority (EPRA).
However, the country faces significant challenges, including system losses in transmission and distribution, which averaged 23.36 percent in the year to June 2025. This means that nearly one in four units generated never reaches consumers. To meet future demand, Kenya must not only triple its generation capacity but also substantially reduce losses.
The government’s pivot to PPPs aims to mobilize private capital for new power plants and infrastructure while modernizing the national transmission grid to improve efficiency and reliability. In November 2024, the administration signaled plans to explore alternative financing for the country’s aging power network, following the cancellation of a deal with Indian-based conglomerate Adani Solutions.
The adoption of PPPs is expected to play a vital role in addressing Kenya’s energy challenges. By leveraging private sector investment, the government hopes to accelerate the development of new power generation projects and improve the overall efficiency of the energy sector. As the country moves forward with its plans to expand its energy generation capacity, the success of these partnerships will be crucial in supporting Kenya’s industrial growth and food security goals.