Kenya has announced plans to set up a large gas-fired power plant as the country works to meet rising electricity demand. Energy Principal Secretary Alex Wachira said the proposed facility will be developed in Mombasa County and is expected to require roughly US $2.9bn in investment.
The plant is planned for Dongo Kundu in the coastal city and will be developed by the state-owned power producer Kenya Electricity Generating Company in partnership with private investors. The facility will run on imported liquefied natural gas (LNG) and is intended to strengthen the country’s power supply while supporting economic and industrial growth.
The facility will have a generation capacity of about 1,200MW and once developed, the planned Dongo Kundu facility would become one of Kenya’s largest power generation projects and is expected to play an important role in strengthening the country’s electricity supply as demand continues to grow. Electricity demand in Kenya has been climbing steadily. Kenya Power and Lighting Company reported a new peak demand of 2,439.06 MW on December 4, 2025, surpassing the previous record of 2,418.77 MW registered on November 18, 2025. Data from the African Development Bank indicates that the country’s peak electricity demand has risen by nearly 35% since 2018.
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Energy demand
The increase has been linked to the expansion of household electricity connections, nationwide electrification initiatives, growing residential consumption, and increasing industrial activity associated with urban development. Figures from the Energy and Petroleum Regulatory Authority show that Kenya’s installed generation capacity reached 3,840.8 MW as of June 2025, with 3,192 MW connected to the national grid. Geothermal energy accounts for the largest share of capacity at 25.9%, followed by hydropower at 24%. Thermal plants contribute 17.2%, while solar photovoltaic installations represent 14.1% and wind power makes up about 12%.
To support future demand, the government is pursuing additional generation capacity alongside investments in transmission infrastructure. The country aims to expand total installed power capacity to about 15,000 MW by 2030. As part of these efforts, Kenya Electricity Transmission Company signed a US $311M public-private partnership agreement in December 2025 with a consortium that includes Africa50 and Power Grid Corporation of India to construct two high-voltage transmission lines.
One line will facilitate the transmission of approximately 300 MW of geothermal energy from the Baringo-Silali fields, while the second will extend high-voltage grid infrastructure into western Kenya to reduce voltage losses and improve supply reliability in the region. In a separate initiative, Kenya Power and Lighting Company recently announced a program valued at nearly KSh1 billion ($7.7 million) to upgrade and expand electricity infrastructure across 11 counties in western Kenya, including Kisumu, Homa Bay, Migori and Kakamega. The project will involve building new transmission lines and completing ongoing electricity works aimed at improving grid stability and supporting regional economic activity.
