Kenya's Geothermal Ambitions: 1,200 Megawatts and Counting in the Great Rift Valley
Steam rises from the fractured earth of the Olkaria geothermal field in Naivasha, approximately 120 kilometres north-west of Nairobi, like a constant reminder of the immense energy trapped beneath Kenya's Great Rift Valley. For the Maasai communities that have grazed their livestock on these volcanic highlands for centuries, the steam was simply a feature of the landscape — visible, mysterious, and largely unremarkable.
Today, that steam is the foundation of one of Africa's most ambitious clean energy programmes. Kenya's geothermal generating capacity has reached approximately 1,200 megawatts, making the country the largest producer of geothermal energy in Africa and the seventh largest in the world. Geothermal power now accounts for approximately 47 percent of Kenya's installed electricity generation capacity and, crucially, provides a reliable baseload supply that complements the country's variable hydropower and wind resources.
The expansion of Kenya's geothermal sector is driven by a combination of geological good fortune, strategic policy decisions, and the growing recognition that renewable energy represents not just an environmental imperative but an economic opportunity.
The Olkaria Complex
The Olkaria geothermal complex, operated by Kenya Electricity Generating Company (KenGen), is the centrepiece of Kenya's geothermal programme. The facility, which has been developed in phases since the early 1980s, now comprises five power stations — Olkaria I, II, III, IV, and VI — with a combined installed capacity of approximately 800 megawatts.
Olkaria VI, the newest addition, was commissioned in phases between 2024 and 2025, adding 140 megawatts of capacity at a cost of approximately $600 million. The plant utilises state-of-the-art binary cycle technology, which allows for the extraction of energy from lower-temperature geothermal resources that were previously considered uneconomical.
The Olkaria complex is also home to Africa's first geothermal direct-use applications, including a greenhouse heating system that supports approximately 20 hectares of flower cultivation and a milk pasteurisation plant serving local dairy farmers. These direct-use applications demonstrate the versatility of geothermal energy beyond electricity generation.
KenGen, which is 70 percent owned by the Kenyan government and 30 percent publicly traded on the Nairobi Securities Exchange, has invested approximately $2.5 billion in geothermal development over the past decade. The company's geothermal expansion programme, which has been supported by concessional financing from the World Bank, the African Development Bank, the French Development Agency, and the Japan International Cooperation Agency, has been one of the most successful public investment programmes in Kenya's recent history.
The Menengai and Suswa Fields
Beyond Olkaria, Kenya's geothermal development has expanded to other fields in the Rift Valley. The Menengai geothermal field, located approximately 25 kilometres north of Nakuru, is the country's second largest development site. The Geothermal Development Company, a state-owned enterprise responsible for upstream geothermal exploration and development, has drilled 56 wells at Menengai, with an estimated resource potential of 1,600 megawatts.
Three independent power producers — OrPower22 (a subsidiary of Ormat Technologies), Sosian Energy, and Quantel Energy — are developing power plants at Menengai with a combined capacity of approximately 300 megawatts. The first of these plants, a 35-megawatt facility developed by Sosian Energy, was commissioned in August 2025 and is supplying electricity to the national grid under a 20-year power purchase agreement with Kenya Power.
The Suswa geothermal field, located approximately 80 kilometres north-west of Nairobi, is at an earlier stage of development. The GDC has completed surface exploration and drilled 12 appraisal wells, with initial results suggesting a resource potential of approximately 600 megawatts. Full development of Suswa is expected to begin in 2027, with first power generation targeted for 2029.
The Economics of Geothermal
Geothermal energy's economic attractiveness lies in its low and predictable operating costs. Unlike solar and wind power, which are intermittent and require backup generation or battery storage, geothermal plants can operate continuously at near-capacity, providing reliable baseload power. The levelised cost of electricity from Kenya's geothermal plants is estimated at between $0.07 and $0.10 per kilowatt-hour, competitive with both fossil fuel generation and other renewable sources.
The reliability of geothermal power has allowed Kenya to reduce its dependence on expensive diesel-powered emergency generation, which had historically been deployed during drought periods when hydroelectric output declined. The elimination of diesel generation has saved Kenya Power approximately $300 million annually in fuel costs and reduced the electricity sector's carbon emissions by approximately 1.5 million tonnes of CO2 per year.
Geothermal development has also created significant economic multiplier effects. KenGen estimates that the Olkaria complex supports approximately 5,000 direct and indirect jobs, including construction workers, engineers, geologists, and support staff. The development of geothermal fields has also spurred infrastructure development — roads, water supply, and telecommunications — in previously remote areas of the Rift Valley.
Private Sector Participation
Kenya's geothermal sector has pioneered private sector participation in African renewable energy. The success of OrPower22, which has operated the Olkaria III plant (105 megawatts) since 2014 and has been a profitable investment for its parent company Ormat Technologies, has demonstrated that independent power producers can operate successfully in Kenya's geothermal sector.
The government's feed-in-tariff policy, which guarantees a fixed price for electricity generated from renewable sources, has provided the regulatory certainty needed to attract private investment. The current feed-in tariff for geothermal power is $0.085 per kilowatt-hour, down from $0.10 in earlier rounds, reflecting the declining cost of geothermal technology.
International energy companies, including Chevron, TotalEnergies, and ENI, have expressed interest in Kenya's geothermal sector. In February 2026, Chevron signed a Memorandum of Understanding with the GDC to explore joint development of the Baringo-Silali geothermal field, which has an estimated potential of 3,000 megawatts — making it one of the largest undeveloped geothermal resources in the world.
Regional Implications
Kenya's geothermal success has implications beyond its borders. The East African Rift System, which extends from Djibouti in the north to Mozambique in the south, hosts geothermal resources in at least 13 African countries. Ethiopia, which has an estimated geothermal potential of 10,000 megawatts, has begun developing the Aluto-Langano field, while Tanzania, Rwanda, and Uganda have initiated exploration programmes.
Kenya has positioned itself as a regional hub for geothermal expertise and training. The Kenya Electricity Generating Company's Geothermal Training Centre, established in collaboration with the United Nations University, has trained over 1,200 professionals from 25 African countries in geothermal exploration, drilling, and reservoir management since its establishment in 2005.
The African Development Bank has cited Kenya's geothermal programme as a model for the continent, noting that geothermal energy "offers African countries a unique opportunity to transition to low-carbon energy systems while building reliable, affordable electricity infrastructure."
Challenges and Risks
Despite the progress, Kenya's geothermal sector faces challenges. Exploration drilling is expensive and carries geological risk — not every well drilled yields commercially viable steam. The high upfront capital requirements of geothermal development — typically $3 million to $5 million per megawatt — limit the pace of expansion, particularly given competing demands on government and development finance resources.
Environmental and social considerations have also emerged. The expansion of geothermal fields has sometimes conflicted with community land rights, particularly in the Mau Forest complex, where conservation concerns intersect with the interests of local communities and geothermal developers. The GDC and KenGen have implemented community benefit-sharing programmes, including school construction, healthcare facilities, and water projects, to mitigate these tensions.
The Vision: 5,000 Megawatts by 2035
Kenya's geothermal ambition extends far beyond the current 1,200 megawatts. The Ministry of Energy and Petroleum's updated National Energy Policy sets a target of 5,000 megawatts of installed geothermal capacity by 2035, which would make Kenya one of the top five geothermal producers globally.
Achieving this target will require sustained investment of approximately $10 billion over the next decade, significant private sector participation, and continued government commitment to a supportive regulatory framework. It will also require advances in geothermal technology, including enhanced geothermal systems that can extract energy from deeper, hotter rock formations.
The potential payoff is enormous. A geothermal-powered Kenya would have reliable, affordable, clean electricity — a foundation for industrialisation, economic growth, and improved quality of life for its 55 million citizens. It would be a model for a continent that is desperately seeking energy solutions that are both sustainable and scalable.
As KenGen CEO Abraham Serem observed during the commissioning of Olkaria VI: "The steam beneath our feet is not just an energy source. It is Kenya's future. And we have only begun to tap it."