This archive report was first published on 19 July 2021.
On July 19, 2021, Kengen announced plans to invest up to KSh216 billion in four new geothermal power plants in Kenya over the next five years, according to Bloomberg.
As the largest energy generating company in East Africa, Kengen has drilled over 310 geothermal wells since its establishment and supplied 1818 Megawatts to the national grid.
Geothermal energy has become a significant source of revenue for Kengen, with drilling projects in Kenya and neighboring countries like Ethiopia and Rwanda. In February this year, the firm secured a $6.6 million (KSh714 million) drilling contract in Djibouti, as reported by Bloomberg.
One of the company's goals is to increase electricity supply from geothermal plants to nearly 60% of the electricity used in Kenya by 2030, up from the current 50%.
However, Kengen faces challenges, including the high cost of drilling wells, which can reach $6 million per well. To address this, Kenya established the Geothermal Development Company to take on the risks associated with geothermal projects. The company also faces competition from alternative energy sources like solar and wind power, which require less capital investment.
