Kenya targets 10000MW power capacity via PPPs by 2032

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 use PPPs in infrastructure and irrigation projects, supporting industrial growth and food security. President William Ruto emphasized that these partnerships will be crucial for 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 and on strengthening bilateral relations with the UAE through enhanced trade, investment, and economic cooperation under the Comprehensive Economic Partnership Agreement (CEPA). The initiative also includes the development of 50 mega dams under PPP arrangements to improve irrigation and food production.

The move follows President Ruto’s remarks in Qatar, where he highlighted Kenya’s limited power supply as a major constraint on attracting foreign direct investment. Kenya’s current installed capacity stands at 3,192 MW, according to the Energy and Petroleum Regulatory Authority (EPRA). However, the country faces significant challenges, including system losses in transmission and distribution that averaged 23.36 percent in the year to June 2025—meaning 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 these 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 aging power network after the cancellation of a deal with Indian‑based conglomerate Adani Solutions. By leveraging private‑sector investment, the government hopes to accelerate the development of new power generation projects and enhance the overall efficiency of the energy sector. The success of these partnerships will be critical to supporting Kenya’s industrial growth and food‑security goals.