Kenya is set to sign a power purchase agreement with Ethiopia to access reserve electricity from the 6,450-megawatt Grand Ethiopian Renaissance Dam (GERD), President William Ruto has confirmed. The move comes as Kenya’s peak demand surpasses 2,300MW and continues to rise, highlighting the need for reliable and affordable energy.
Why is Kenya turning to Ethiopia for power?
President Ruto explained that the additional supply from GERD would strengthen Kenya’s reserve margin and reduce supply deficits, especially during droughts when local hydropower is unstable. “Reliability is especially critical for special economic zones, industrial parks, ICT hubs, and agro-processing facilities, all of which require consistent and affordable power to drive Kenya’s development agenda,” he said.
Speaking at the dam’s inauguration in Ethiopia’s Benshangul Gumuz region alongside Prime Minister Abiy Ahmed and regional leaders, Ruto praised Ethiopia for financing the $5 billion mega project entirely through domestic resources. He linked this achievement to Kenya’s own push to fund affordable housing projects locally, noting that GERD stands as a “monumental symbol of the continent’s capacity to chart its own destiny and deliver transformative infrastructure.”
How does GERD impact Africa’s energy future?
Ruto described the dam as both a blueprint and an inspiration for scaling up clean energy projects across Africa. With energy demand growing due to urbanisation, population growth, and industrialisation, he said GERD represents “a bold affirmation of Africa’s capacity to shape its own destiny, marshal its resources, and deliver transformative infrastructure in pursuit of prosperity.”
He also addressed the concerns of Nile Basin States, supporting ongoing negotiations between Ethiopia, Egypt, and Sudan. “These negotiations provide the most viable path to a mutually acceptable agreement, one that respects sovereign rights and developmental aspirations while ensuring equitable use of the Nile waters,” he added, offering Kenya’s facilitative or technical support if needed.
South Sudan’s President Salva Kiir announced that his country would also sign a deal to receive electricity, saying, “This will bring power to our towns, villages, schools, and hospitals, creating new opportunities for our people.” Somalia’s President Hassan Sheikh Mohamud emphasized fair use of Nile waters and affirmed Ethiopia’s right to pursue prosperity. Barbados Prime Minister Mia Mottley commended Ethiopia’s resilience in building the dam despite being denied international funding.
By Lucky Anyanje
