Ethiopia is preparing to double the amount of electricity it exports to Kenya from about 200 MW to as much as 400 MW from December 2026, following final technical preparations and an updated power supply agreement between Ethiopian Electric Power and Kenya Power. The increase will expand one of East Africa’s most important cross-border electricity arrangements as the region moves toward greater integration of national power systems.
The revised arrangement changes how the electricity will be supplied across the day. Kenya will be able to receive up to 400 MW during periods of peak demand, while the contracted supply during off-peak hours will be around 150 MW, compared with the earlier structure of roughly 200 MW at peak and 65 MW off-peak. A 20-year PPA signed in 2022 provides the longer-term framework, while a new power supply agreement signed in July 2026 updates the commercial and operational terms.
The expansion is also being treated as a grid-integration project rather than simply a larger electricity sale. A joint technical committee is overseeing trial operations and preparations for grid stability, with the technical works between the two countries reported to be in their final stages. This matters because moving larger volumes across a shared interconnection requires both systems to manage changes in generation, demand, frequency and transmission flows.
The Kenya deal is part of a much wider push to build an interconnected East African electricity market. A US$1.6 billion World Bank-backed regional programme is supporting cross-border power integration through the Eastern Africa Power Pool, while Ethiopia is planning additional transmission links with South Sudan, Somalia and Somaliland, alongside corridors involving Djibouti and Sudan. Ethiopia is targeting about 5,000 GWh of annual electricity exports by 2030, making regional power trade an increasingly important part of its electricity-sector strategy.
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The expansion also highlights the tension between exporting electricity and expanding domestic access. Ethiopia’s generation increased by about 43% in 2024/25, but only around 44% of its population had Tier 1 or higher electricity service in 2025, according to the figures reported. Under its National Energy Compact, the country aims to raise Tier 1+ access to 75% while tripling annual electricity exports by 2030, meaning the next phase of Ethiopia’s power strategy will have to expand both the electricity available for regional markets and the infrastructure needed to deliver it at home.
