KenGen picks two firms to modernise power plant

Kenya Electricity Generating Company (KenGen) has awarded two companies a multi-billion-shilling contract to rehabilitate the country’s oldest geothermal power plant-Olkaria I.

The planned revitalisation of the power plant is aimed at increasing its output from 45MW to 63MW to accelerate the country’s transition to green energy, the NSE-listed electricity generator said in a statement yesterday.

In the tender, SEPCOIII Electric Power Construction Company Limited will do the Engineering, Procurement, and Construction (EPC) whereas Toshiba Energy Systems and Solutions Corporation (Toshiba ESS) will supply steam turbines and generators for the three units of the power plant.

The strategic initiative, according to the company, is poised to elevate the power plant’s operational efficiency and increase electricity generation output by up to 40 per cent compared to existing conventional models whose first unit was commissioned in 1981 and has since been decommissioned.
KenGen Managing Director and CEO, Peter Njenga said the renovation of Olkaria I represents a historic milestone for KenGen as it continues its commitment to sustainable energy solutions.

“By leveraging the latest advancements in geothermal technology, we aim to not only enhance the performance of the plant but also set new standards for renewable energy production in Kenya,” he stated.

The modernisation project, scheduled for completion by December 2026, is designed to align with Kenya’s broader energy objectives and the Vision 2030 initiative, which envisions a transition to 100 per cent green energy by the end of the decade.

“As the oldest geothermal power plant in Africa, Olkaria I holds significant historical importance and stands as a testament to Kenya’s pioneering efforts in renewable energy production and therefore the excitement for us to have this power plant back on the grid,” said Njenga.

The KenGen boss expressed confidence in the project, citing resource availability and the company’s highly skilled expertise. He added: “Having operated for more than 40 years, this confirms the sustainability of geothermal coupled with the skills set and human resource capabilities that KenGen has developed over the years, we are confident the project will be completed on time and within budget.”

Through the comprehensive renovation, KenGen aims to not only extend the operational lifespan of Olkaria I but also establish a model for sustainable energy development that can be replicated across the region as Kenya angles to exploit the 10,000MW of geothermal potential in the Rift Valley region of Kenya.

By prioritising innovation, efficiency, and environmental responsibility, KenGen is paving the way for a greener, more sustainable future for Kenya’s energy landscape. The geothermal power station was shut down last year to pave the way for its rehabilitation, with plans to change turbines and introduce new technology.

Kengen is seeking to rehabilitate its existing power plants, mainly those powered by geothermal, to make them more efficient for sustainable generation.