KenGen has completed a KSh15.6 billion upgrade of Kenya’s Olkaria I geothermal plant as the country works to strengthen domestic power generation.
KenGen has completed the KSh15.6 billion Olkaria I geothermal upgrade in Kenya, rehabilitating the country’s oldest geothermal power station as it prepares to return to the national grid.
Africa Sustainability Matters reports that the rehabilitation increased the plant’s capacity to 60.5 MW. However, News African quotes KenGen Managing Director Peter Njenga referring to the facility as a 63 MW power station.
KenGen’s geothermal overview still lists the original Olkaria I configuration at 45 MW, comprising three 15 MW units. The company commissioned the three units between 1981 and 1985.
The available sources therefore give different figures for the plant’s post-rehabilitation capacity.
KenGen took the plant out of operation for about three years for the refurbishment. Its return comes as Kenya faces rising electricity demand and greater reliance on electricity imports from neighbouring countries. The wider challenge of managing electricity supply and demand is explored in our article, What Kenya needs to integrate more wind and solar into its power system.
Njenga announced the completion during the company’s annual general meeting in Nairobi. KenGen is now carrying out reliability tests ahead of commissioning. Njenga said he expects the plant to be commissioned before the end of 2026.
Olkaria I geothermal upgrade adds new equipment
KenGen replaced ageing generating equipment and upgraded infrastructure serving the plant’s three original units.
China’s SEPCOIII Electric Power Construction Co. worked on the rehabilitation. Japan’s Toshiba Energy Systems and Solutions Corporation supplied new steam turbines and generators for the three units.
The engineering works also covered the steam-gathering system and included a new gas-insulated substation.
The Kenya Olkaria I geothermal upgrade will allow KenGen to increase production from an established geothermal resource. It also extends the operating life of a power station that has supplied electricity for more than four decades.
The Energy and Petroleum Regulatory Authority (EPRA) approved a 25-year power purchase agreement (PPA) for the refurbished plant.
EPRA Director General Edward Kinyua said the regulator had approved the agreement and confirmed that the plant was undergoing reliability testing.
Kenya’s electricity demand rises
Olkaria I is returning to service as Kenya’s electricity demand continues to grow.
Peak demand reached 2,549 MW in 2026, compared with 2,149 MW in 2023, when the plant went offline for rehabilitation.
Kenya has also increased its reliance on electricity imports from neighbouring countries.
Imports reached 1.91 billion kWh in the financial year ended June 2026, up 60.5% from 1.19 billion kWh in the financial year ended June 2024.
Geothermal remains a major source of Kenya’s electricity. In our report, Menengai pushes Kenya’s geothermal capacity beyond 1 GW, we examine the technology’s growing contribution to the country’s electricity mix.
Geothermal plants supplied 6.42 billion kWh in the financial year ended June 2026, equivalent to 40.9% of electricity supplied to Kenya Power. Hydropower contributed 3.55 billion kWh, or 22.65%.
The Olkaria I rehabilitation also forms part of KenGen’s wider investment in generation infrastructure.
The company reported KSh15.5 billion in capital expenditure in the financial year ended June 2026. It also supplied 8,975 GWh of electricity to the national grid during the period.
Olkaria remains central to Kenya’s geothermal sector
The wider Olkaria geothermal development lies within Hell’s Gate National Park, near Lake Naivasha and about 120 kilometres from Nairobi.
KenGen says geothermal exploration in the area eventually led to construction of Kenya’s first geothermal power station between 1981 and 1984.
Olkaria remains central to the country’s geothermal industry. KenGen says it currently operates 754 MW of geothermal capacity within a total installed generation portfolio of 1,786 MW.
The area will also host KenGen’s Sustainable Energy Conference from November 24 to 27, 2026.
The conference will focus on areas including investment, project development, partnerships and carbon trading. KenGen expects more than 1,500 participants from over 80 countries, including investors, financing institutions, utilities and power producers.
KenGen is also seeking to attract manufacturers and energy-intensive businesses to Olkaria through its Green Energy Park, as explored in our earlier article, Kenya courts manufacturers with geothermal energy.
The completion of the Olkaria I rehabilitation comes as Kenya seeks to bring existing geothermal generation back into service while developing the next phase of its clean-energy sector.
