Kenya’s Ministry of Energy has announced a series of measures to modernise the national power infrastructure, with a particular focus on special economic zones and fast-growing industrial hubs. Kenya’s installed capacity stands at approximately 3,000 megawatts, with nearly 90% sourced from renewables such as geothermal, hydropower and wind. However, technical losses on the grid exceed 20%, affecting the competitiveness of newly developed industrial sites. The official target is to reduce these losses to below 15% by 2027 through substation upgrades and reinforcement of transmission lines.
New industrial hubs and localised demand
The government is targeting the Naivasha, Konza Technopolis and Mombasa corridors, where demand is rising faster than distribution capacity. The programme aims to connect at least 12 special economic zones to a priority network by 2026. Authorities state that these hubs could eventually generate over 1,000 megawatts of combined demand, concentrated in specific time windows, creating local stability challenges. A KES42bn ($270mn) funding package has been approved to accelerate the associated infrastructure.
Co-financing agreements are underway with multilateral institutions to incorporate Smart Grid technologies, including remote monitoring and control systems and next-generation smart meters. These tools are designed to anticipate congestion, reduce maintenance delays and better respond to load fluctuations, particularly during industrial production cycles.
Digital integration and data governance
The Kenya Electricity Transmission Company (KETRACO) is leading the integration of digital platforms to monitor power flows in real time and automate coordination between dispatch centres and local units. Deployment of an Advanced Distribution Management System (ADMS) is being piloted in two counties. At the same time, Kenya Power is developing demand modelling tools in partnership with the University of Nairobi to optimise investments in the most critical areas.
The transition also relies on strengthened energy data governance. A centralised portal project for all network data is underway, aimed at improving transparency, facilitating access for industrial investors and enhancing the Energy Regulatory Commission’s planning capabilities. The reference text emphasises the need for standardised exchange formats and clear regulation regarding data responsibility in the event of disputes or technical failures.
Investment costs and operational risks
The plan includes a total investment estimated at KES210bn ($1.35bn) over five years, financed through public-private partnerships, concessional loans and tariff reforms. An initial KES18bn ($115mn) tranche is allocated to the immediate reinforcement of 45 strategic substations. The ministry specified that all new infrastructure must incorporate flexibility criteria, including the ability to host distributed sources and adapt to variable industrial consumption profiles.
Cyber vulnerability is identified as a growing risk factor. The report cites several intrusions targeting operators in other East African countries and notes that new digital systems must meet enhanced cybersecurity standards. An audit of critical infrastructure is underway to define priority intervention zones. Authorities also plan to revise the operator remuneration framework, allocating a greater share to technical performance and reduced outage times.
