The Ethiopian Electric Utility has finalized a power purchase agreement with Kenya Power and Lighting Company at a tariff of 15.5 U.S. cents per kilowatt-hour.
The Ethiopian Electric Utility formalized the agreement with Kenya Power and Lighting Company. Under the terms Kenya will purchase electricity at 15.5 U.S. cents per kilowatt-hour plus a monthly demand charge of about 6.52 dollars.
EEU Chief Executive Officer Getu Geremew and KPLC Managing Director and CEO Joseph Siror signed the pact. Geremew described the deal as a model of regional synergy that advances a connected East Africa. Siror said the contract supports long-term peace and economic ties while providing grid electricity to communities along the shared border.
Kenya imported more than 10 percent of its electricity in the fiscal year ending June 2025 with Ethiopia supplying 83 percent of those imports. Imports from Ethiopia rose 79 percent year-on-year in the first half of the 2024-2025 financial year. A moratorium on new domestic power purchase agreements has limited local generation since 2018.