By Benadeta Mwaura - Reporter
Kenya, April 24, 2026 - Kenya Power’s growing reliance on imported electricity is now hitting its books harder, with new data showing that billing for power purchases from Ethiopia has nearly tripled to about KSh8 billion, underscoring the cost implications of plugging domestic supply gaps.
The sharp rise reflects a deeper structural shift in Kenya’s energy mix, where imported electricity, particularly from Ethiopia, has become a critical stabiliser for the national grid.
Over recent years, imports have surged as demand grows and local generation, especially hydropower, faces constraints from weather variability and capacity limits.
Ethiopia has emerged as Kenya’s dominant external supplier, accounting for the bulk of imported electricity thanks to its relatively cheaper hydropower.
The country already supplies a significant share of Kenya’s grid needs, with imports contributing roughly 11 percent of total electricity consumption.
The economics behind the imports remain compelling despite the rising bill. Electricity from Ethiopia costs about KSh8.3 per unit, making it cheaper than thermal generation and helping Kenya avoid even higher electricity tariffs that would come from increased reliance on fuel-based power plants.
However, the tripling of the import bill to KSh8 billion signals a growing trade-off. While imports help stabilise supply and reduce dependence on expensive thermal plants, they also increase Kenya Power’s financial exposure to external suppliers and currency fluctuations.
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This dependence has been building steadily. Imports have been the fastest-growing source of electricity for Kenya Power, rising sharply as the utility seeks to meet peak demand and avoid rationing, particularly in regions prone to supply shortages.
At the same time, Kenya has explored increasing imports further, including requests to double supply from Ethiopia under long-term agreements, reflecting how central cross-border power trade has become to the country’s energy security strategy.
But the model is not without risk. Analysts and the utility itself have warned that heavy reliance on imports leaves Kenya exposed to external shocks, including droughts affecting Ethiopia’s hydropower output or disruptions in transmission infrastructure.
The rising KSh8 billion bill therefore tells a bigger story than just numbers. It highlights a system balancing affordability against dependency,where cheaper imported power is helping keep lights on and costs relatively contained, but at the same time deepening Kenya’s reliance on energy produced beyond its borders.
In the long term, this raises a critical question for policymakers: whether Kenya can scale up domestic generation fast enough to reduce import dependence, or whether cross-border electricity trade will remain a permanent, and increasingly costly, feature of the country’s energy landscape.