Energy

Kenya’s Grid Under Pressure: The Floating Power Solution

Kenya faces a critical juncture in its electricity supply. Peak power consumption hit a record 2.4 gigawatts in 2025, a sharp increase from 1.8 gigawatts in 2018. This surge in demand coincides with a grid operating on a minimal reserve margin of just 2.3%. This narrow buffer leaves the system highly vulnerable to unexpected disruptions. Recently, peak demand reached 2,439 megawatts against an available operational capacity of 2,495 megawatts, necessitating planned power rationing in specific areas to maintain grid stability.

The strain is evident in the country’s reliance on external sources. Electricity imports accounted for a record 11% of Kenya’s power consumption in 2025. Meanwhile, contracted domestic supply has grown only modestly to 2.9 gigawatts. This imbalance stems partly from a moratorium on new power-purchase agreements imposed in 2018. Although lifted late last year, the delay significantly stalled investment in new generation capacity while demand continued its upward trajectory.

To address this immediate shortfall, the Kenyan government is exploring rapid deployment options. Negotiations are underway with Karpowership, a Turkish energy firm and the world’s largest provider of ship-mounted power plants. The discussions, reportedly initiated in 2024, focus on deploying floating power vessels along the Kenyan coast. These vessels offer a fast track to increasing electricity supply, bypassing the lengthy construction timelines of traditional land-based power stations.

Karpowership operates a fleet of 45 floating power vessels, capable of generating over 8,000 megawatts globally. The company positions its ships as rapid energy solutions, capable of connecting to national grids in under 30 days. This speed is the primary appeal for a government grappling with immediate supply constraints while longer-term energy projects remain under development. Karpowership already supplies electricity to eight African nations, including Ghana, Senegal, Mozambique, and Côte d’Ivoire.

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However, this approach carries inherent risks. The Turkish company’s operations in Africa have faced significant challenges. In 2023, Karpowership severed electricity supply to the capitals of Sierra Leone and Guinea-Bissau. This action followed reports that authorities in those countries failed to settle unpaid bills totaling approximately $40 million and $15 million, respectively. This precedent highlights the financial and operational vulnerabilities associated with relying on external, privately-owned floating power plants.

Kenya’s consideration of Karpowership reflects a pragmatic response to an urgent problem. The immediate need for grid stability and increased capacity is driving the exploration of these rapid deployment vessels. Yet, the government must carefully weigh the speed of implementation against the financial obligations and potential supply security risks demonstrated in other African markets. The decision will shape Kenya’s energy resilience in the near term, serving as a critical test of balancing immediate needs with long-term stability.

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