Infrastructure

Ethiopia and Kenya to Double Cross-Border Power Trade by December 2026

AI SUMMARY

Ethiopian Electric Power is finalizing preparations to double its electricity supply to Kenya to 400 MW starting in December 2026.

Ethiopia plans to double its electricity export to Kenya to 400 MW by December 2026, marking a milestone in East Africa's regional power integration.
Under the revised arrangement, Kenya Power will import up to 400 MW during peak periods and 150 MW off-peak, up from the previous structure of 200 MW and 65 MW respectively.
The 1,045-kilometer, 500-kilovolt transmission line connecting Wolayta-Sodo in Ethiopia to Suswa in Kenya was constructed at a cost of $1.26 billion, funded by the World Bank and the African Development Bank.
Under a July 2026 agreement, Ethiopia supplies electricity to Kenya at a rate of approximately 24.07 Birr ($0.15) per kilowatt-hour.
According to World Bank data, Kenya saved about $10 million during its first year of power imports from Ethiopia by displacing expensive thermal generation.
Ethiopia is currently supplying 100 MW of electricity to Tanzania on a pilot basis, with regular sales planned once regional infrastructure upgrades are complete.
Ethiopia currently exports electricity to Djibouti, Kenya, Tanzania, and Sudan, with new agreements underway with South Sudan and interest from Somalia.