Ethiopia is finalizing preparations to double its electricity supply to neighboring Kenya, scaling total export volume up to 400 MW, according to Ethiopian Electric Power (EEP). Scheduled to take effect in December 2026, this expansion marks a major milestone in East Africa’s advancing regional power integration.
Destalem Hailu, Deputy CEO for the Transmission Business Sector at EEP, stated that technical and related works between the two nations have reached their final stages, paving the way for the volume increase. Under the revised arrangement, Kenya Power will import up to 400 MW during peak demand periods, while lowering offtake to 150 MW during off-peak hours—updating the previous structure of 200 MW at peak and 65 MW off-peak.
The Ethiopia-Kenya electricity trade traces back to a landmark power purchase agreement signed in 2012, which envisioned Kenya importing up to 400 MW upon completion of transmission infrastructure. Although construction delays pushed back implementation, the 500-kilovolt Ethiopia-Kenya High Voltage Direct Current (HVDC) interconnector became operational in late 2022. Stretching 1,045 kilometers from Wolayta-Sodo in Ethiopia to Suswa in Kenya, the transmission line was constructed at a cost of $1.26 billion with financing from the World Bank and the African Development Bank.
While a 20-year power purchase agreement was signed in 2022, a new framework was established via a power supply agreement signed in July 2026 between Ethiopian Electric Utility and the Kenya Power and Lighting Company. Under this arrangement, Ethiopia supplies electricity at a rate of approximately 24.07 Birr (about $0.15) per kilowatt-hour, inclusive of a capacity (demand) charge.
The financial benefits are already materializing: according to World Bank data, Kenya saved approximately $10 million during its first year of importing electricity from Ethiopia by displacing expensive thermal generation and lowering overall supply costs.
Beyond Kenya, Ethiopia is actively expanding its electricity exports southward. EEP disclosed that Ethiopia is currently supplying 100 MW of electricity to Tanzania on a pilot basis, with regular power sales to commence once infrastructure upgrades between Kenya and Tanzania are fully completed.
This development positions Ethiopia as a central hub in the emerging regional electricity market. The Kenya-Tanzania link is expected to eventually connect further south to Zambia, laying the groundwork for broader integration between Eastern and Southern African power systems. Currently, Ethiopia exports electricity to Djibouti, Kenya, Tanzania, and Sudan, with new agreements underway with South Sudan and expressions of future interest from Somalia.
