Kenya’s electricity sector brings together generation, transmission, distribution and regulation.
Kenya’s electricity sector involves several institutions responsible for different stages of power generation, transmission, distribution and regulation. These include the Kenya Electricity Generating Company (KenGen), Kenya Power, the Kenya Electricity Transmission Company (KETRACO), the Energy and Petroleum Regulatory Authority (EPRA), the Geothermal Development Company (GDC) and the Rural Electrification and Renewable Energy Corporation (REREC).
Their responsibilities cover the production of electricity, the movement of power across the national grid, its distribution to consumers, and the development and regulation of energy infrastructure.
The electricity supply chain can be understood through four main stages:
Generation → Transmission → Distribution → Consumer
Together, these stages form the backbone of the Kenya electricity sector.
The institutions involved have distinct responsibilities, from generating and transmitting electricity to distributing it, regulating the sector and expanding access to energy.
So, who does what?
1. KenGen: Generating electricity
The Kenya Electricity Generating Company, commonly known as KenGen, is the country’s largest electricity generator.
According to KenGen, the company generates about 60% of Kenya’s electricity. It has an installed generation capacity of approximately 1,786 MW, using geothermal, hydro, wind and thermal energy sources.
Its geothermal facilities include the Olkaria geothermal field in the Rift Valley. KenGen also operates hydropower stations, including those in the Seven Forks cascade along the Tana River.
KenGen is not the only electricity producer in Kenya. The generation market is liberalised, with several licensed independent power producers (IPPs) supplying electricity to the national grid. These include companies operating geothermal, wind, solar and thermal power plants, as outlined in EPRA’s electricity-sector overview.
2. KETRACO: Transmitting electricity across the country
The Kenya Electricity Transmission Company, or KETRACO, helps build and operate the high-voltage infrastructure that moves bulk electricity across the country.
Its mandate is to plan, design, construct, own, operate and maintain the high-voltage electricity transmission grid and regional power interconnectors. These responsibilities are set out in KETRACO’s mandate.
Transmission lines carry electricity from power generation plants towards major demand centres, where it can be distributed to consumers. Regional interconnectors also enable electricity trade between Kenya and neighbouring countries.
KETRACO is not the only company with transmission assets. According to EPRA, Kenya’s transmission systems are owned by both KETRACO and Kenya Power.
3. Kenya Power: Distributing and selling electricity
Kenya Power, formally the Kenya Power and Lighting Company (KPLC), is responsible for distributing electricity to homes, businesses and other consumers, as well as retailing power.
The company says it serves more than 9.6 million customers through its electricity network, as outlined on its official website.
Its responsibilities include connecting customers to the electricity supply, maintaining the distribution network, managing customer accounts and billing, and selling electricity to consumers.
Kenya Power also purchases bulk electricity from KenGen and other licensed producers through power purchase agreements (PPAs). These agreements are subject to approval by EPRA.
The distinction between the two main grid companies is therefore important: KETRACO develops and operates high-voltage transmission infrastructure, while Kenya Power distributes electricity to customers and manages retail supply. Kenya Power also owns some transmission assets.
4. EPRA: Regulating the electricity sector
The Energy and Petroleum Regulatory Authority (EPRA) is Kenya’s energy-sector regulator.
Established under the Energy Act, 2019, EPRA is responsible for the economic and technical regulation of electricity, renewable energy, petroleum and coal. Its statutory mandate includes regulating electricity generation, transmission, distribution, supply and use.
In the electricity sector, EPRA licenses power producers and other industry participants, sets and reviews electricity tariffs, and approves power purchase agreements and network service contracts.
It also monitors compliance with technical, safety and quality standards.
While companies such as KenGen, KETRACO and Kenya Power undertake different activities in the electricity supply chain, EPRA oversees the sector and regulates how these activities are carried out. Its electricity-sector responsibilities provide further detail.
5. GDC: Developing geothermal resources
The Geothermal Development Company (GDC) supports the development of Kenya’s geothermal resources.
Its work includes geothermal exploration, drilling, steam-field development and management. GDC develops geothermal steam fields and supplies steam to power producers, including KenGen and private investors, for electricity generation.
The company’s role is to help establish the geothermal resource and infrastructure needed for power generation, as explained in its institutional mandate.
GDC’s responsibilities also include early power generation through the installation of wellhead generating units, according to its frequently asked questions.
This means GDC is involved in geothermal development and can also undertake early generation, while power producers use geothermal resources to generate electricity.
6. REREC: Expanding rural electrification and renewable energy
The Rural Electrification and Renewable Energy Corporation (REREC) is responsible for implementing Kenya’s rural electrification programme and promoting renewable energy development.
Its mandate includes expanding electricity access in areas that are not adequately served by the national grid. It also supports the development and use of renewable energy technologies, including solar, wind, biomass and small hydropower.
REREC’s work includes grid extension, last-mile electricity connections, solar mini-grids and standalone off-grid systems.
The corporation’s official mandate and areas of focus provide further details on its responsibilities.
7. The Ministry of Energy and Petroleum: Setting policy direction
The Ministry of Energy and Petroleum provides policy direction for Kenya’s energy sector.
Its responsibilities include developing national energy policies, coordinating energy planning and overseeing programmes relating to electricity generation, transmission, rural electrification and renewable energy development.
The Ministry’s role differs from that of EPRA. While the Ministry develops policy and provides strategic direction, EPRA is responsible for regulating the sector.
More information is available through the Ministry’s mandate and functions.
How the Kenya electricity sector works together
The roles of these institutions are connected through the electricity supply chain.
For example, KenGen or an independent power producer generates electricity at a power plant. The electricity enters the transmission network, which includes infrastructure owned and operated by KETRACO and Kenya Power. Kenya Power then distributes electricity to homes and businesses and manages the retail relationship with customers.
EPRA regulates the activities of electricity-sector participants, while the Ministry provides policy direction. GDC supports geothermal resource development, and REREC works to expand rural electrification and renewable energy access.
The simplified electricity supply chain is:
KenGen and independent power producers → Transmission network → Kenya Power’s distribution network → Homes and businesses
Why these institutions matter to energy investors
Understanding the responsibilities of each institution is important when assessing an energy project in Kenya.
A power generation project, for example, needs to consider the electricity off-taker, regulatory approvals and the availability of transmission infrastructure to evacuate the power generated.
For geothermal projects, investors also need to understand the stage of resource development and the respective roles of GDC and power producers.
The institutions involved in generation, transmission, distribution, regulation and energy access each have a role in determining how projects are developed and connected to Kenya’s electricity system.
Together, they form the institutional framework behind the country’s electricity sector and its renewable energy development.
