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# [KENYA / AFRICA] Ethiopia-Kenya 25-Year Power Deal at 15.5¢/kWh Reshapes East Africa's Energy Map
- URL: https://businessoi.media/en/kenya-afrique-ethiopie-kenya-un-accord-electrique-a-15-5-c-kwh-pour-25-ans-redessine-la-carte-energetique-est-africaine-en/
- Published: 2026-07-31T08:43:50.000Z
- Updated: 2026-07-31T08:43:50.000Z
- Description: EEU and Kenya Power sign a 25-year power purchase agreement at 15.5¢/kWh, anchored on the Renaissance Dam. The East Africa Power Pool moves into high gear.
- Author: Emmanuel TAOCHY
- Tags: Kenya, Afrique, Investissement, Économie, Flash de mi-journée, #en

**Signed on July 10, 2026, between Ethiopian Electric Utility and Kenya Power, this landmark 25-year agreement places the Grand Renaissance Dam at the heart of East African energy integration — a powerful signal for the entire region, including Indian Ocean nations within the EAPP framework.**

## A Contract That Redraws the Regional Energy Map

Ethiopian Electric Utility (EEU) and Kenya Power and Lighting Company (KPLC) formalized a long-term power purchase agreement on July 10, 2026\. The agreed tariff stands at **15.5 US cents per kilowatt-hour** — equivalent to 24.07 Ethiopian birrs — plus an additional capacity charge of 1,010.89 birrs. EEU CEO Getu Geremew and KPLC CEO Joseph Siror signed the deal, building on a framework agreement from 2022.

The primary source is the **Grand Ethiopian Renaissance Dam (GERD)**, which now exceeds 5,000 MW of installed capacity — one of the most powerful hydroelectric facilities on the African continent.

## The Eastern Africa Power Pool Shifts Into High Gear

The agreement fits squarely within the **Eastern Africa Power Pool (EAPP)**, the regional initiative designed to enable electricity trade among 13 East African countries — including the Comoros and Seychelles. For Kenya Power, the stakes are twofold: securing supply against growing demand while reducing dependence on imported fossil fuels.

Ethiopia-Kenya border areas will be among the first to benefit, with improved electricity reliability expected in historically underserved regions.

## A Blueprint for African Energy Corridors

« This agreement is a concrete demonstration of what regional integration can deliver, » both parties emphasized. Beyond the commercial dimension, it sets a model for energy partnerships that could inspire other corridors — toward Djibouti, Somalia, and eventually Indian Ocean Commission member states.

East Africa, which posted **6.6% growth in 2025** according to the African Development Bank, must secure adequate energy supply to sustain this momentum.

## Why It Matters

East Africa's electricity demand is projected to **double by 2035**. Without cross-border interconnections, the continent's fastest-growing economies risk being held back by structural energy shortfalls. This 25-year deal between Ethiopia and Kenya lays a critical foundation — proving that a regional East African energy market is now under construction, not merely an abstract ambition.

*Sources: Ecofin Agency, Capital Ethiopia, July 2026.*