Kenya has obtained a Ksh2.1 billion financing package from the African Development Bank (AfDB) to fast-track construction of the 35-megawatt OrPower Twenty-Two (OTTL) geothermal power plant at the Menengai geothermal field in Nakuru County.

The Menengai resource, one of the country’s largest geothermal reserves, already supports the operational 35 MW Sosian Menengai plant and the 35 MW Globeleq Menengai project, which is currently under development, strengthening Kenya’s push to expand renewable energy capacity and electricity generation.

According to the official statement seen by People Daily digital, the public-private partnerships were to unlock long-term benefits for Kenya’s energy sector.

 “The Menengai model showcases how public-private partnerships can unlock private investment in geothermal energy, providing long-term benefits for Kenya’s energy sector and consumers,” the statement released on Thursday, January 22, 2026, read in part.

It emphasised that the project’s environmental impact, noting that it will help avoid 1.9 million tonnes of greenhouse gas emissions over 25 years while demonstrating next-generation geothermal technology in Africa.

The commissioning of the OTTL plant will allow Menengai Phase I to reach its full 105MW capacity, strengthening the region’s role as a key hub for geothermal power generation.

The project is being developed by OTTL, an Independent Power Producer, with steam supplied by the government-owned Geothermal Development Company (GDC).

The Kenya Power and Lighting Company (KPLC) will purchase all electricity under a 25-year Power Purchase Agreement (PPA). Once operational, the plant is expected to generate approximately 301 GigaWattHour (GWh) of reliable, low-cost, clean energy annually.

The energy deal

The financing is aligned with Kenya’s Mission 300 Energy Compact, which targets an increase in geothermal capacity from 940 MW to 1,824 MW by 2030.

 It also advances the country’s ambition of achieving 100 per cent clean energy by encouraging greater private sector involvement.

The AfDB loan was supplemented by financing from the International Finance Corporation (IFC), raising total project debt to Ksh8.3 billion against an estimated project cost of Ksh11.8 billion.

The OTTL Menengai Geothermal Power Plant marks a significant milestone in Kenya’s renewable energy agenda, poised to lower electricity costs, ensure long-term power stability, and boost the country’s manufacturing sector.

The project strengthens geothermal energy capacity while delivering affordable tariffs and substantial climate benefits that support Kenya’s clean energy transition.