Kenya’s reliance on electricity imports increased in the six months to June 2026 as the country raced to avert potential rationing, with the share of supplies from Ethiopia and Uganda rising to 12 percent of the total supplies to the Kenya Power.
An analysis of official data shows that the share of imported power on the grid rose from 10 percent in the comparable period of 2025, mainly tied to more inflows of hydropower from Ethiopia.
Kenya has turned to Ethiopia to plug the gap in local electricity generation and meet a fast-growing demand, a move that, however, leaves Kenya exposed in the event of major disruptions in the neighbouring country.
Ethiopia supplied Kenya Power with 7.88 million kilowatt-hours (kWh) in the six months to June this year, or 10.3 percent of the total supplies, up from 7.26 million kWh or eight percent in the same period last year.
A fast-rising demand for power from households and businesses has piled pressure on Kenya Power and eaten into the extra generation capacity available above demand, forcing the utility to ration supplies especially during peak hours to protect the grid.
Kenya Power Managing Director Joseph Siror recently warned that the increased dependence, mainly on Ethiopia, leaves Kenya in a precarious position in case of major disruptions to hydropower plants.
“My concern is that this is hydropower from these countries and in a situation where there is a serious drought, then they might be left in a position where they might be unable to meet this obligation (supplying the agreed amounts of electricity),” he said.
Supplies from Uganda marginally rose to 158,390kWh or two percent of the total electricity bought by Kenya Power in the review period, up from 114,120kWh or 1.5 percent in the six months to June last year.
Extra generation capacity available above demand, technically known as spinning reserves, shrunk to less than 3.3 percent as at June this year, which is significantly lower than the internationally allowed range of 20 percent to 35 percent.
Thinning reserves heighten the risk of blackouts because the grid is unable to meet sudden spikes in demand, triggering a collapse of the grid.
Kenya’s peak demand (highest point of electricity usage) currently stands at 2,439.06 megawatts (MW) recorded on December 4, 2025.
The fast-rising consumption from households and businesses and increased connections have left Kenya Power scrambling to meet the demand, forcing increased reliance on Ethiopia and Uganda.
Kenya has a 25-year Power Purchase Agreement (PPA) with Ethiopia and a power exchange deal with Uganda and Tanzania.
Under the running 20-year PPA with the Ethiopian Electric Power (EEP), which was signed in 2022, Kenya is entitled for the supply of 200MW of electricity priced at $0.65 cents per kWh, or approximately sh84.03 per kWh.
The deal with EEP allows Kenya Power to tap 200MW at peak and 65MW during off-peak. Kenya Power will take up an extra 200 megawatts (MW) of power in December 2026 under a PPA with Ethiopia to plug a gap in supply. This means that Kenya Power will, from December 2026, tap a total of 400MW of electricity under the PPA with EEP. Under the deal, Kenya will, from December, take up 400MW at peak times but cut uptake to 150MW during off-peak times.
Kenya is also seeking to change the exchange deal with Uganda to a PPA in a bid to import more hydropower from Kampala.
Under exchange deals with Uganda and Tanzania, the country that imports more from the other within a defined period pays.
