President William Ruto is eager to finalize a power purchase agreement (PPA) with Ethiopia, following the launch of the Grand Ethiopian Renaissance Dam (GERD). This is Africa’s largest hydroelectric dam with a capacity of 6,450 megawatts and it is expected to enhance regional energy collaboration. Speaking during the dam’s inauguration, Dr. Ruto announced that Kenya is prepared to sign a PPA that will allow Kenya to import Ethiopia’s surplus energy.

A potential agreement would allow Kenya to utilize excess electricity from the GERD to fuel industries, ICT hubs, manufacturing, and agriculture. This would strengthen competitiveness, create jobs, and drive sustainable growth. Kenya’s electricity deficit currently stands at over 2,300 megawatts and importing power from Ethiopia could alleviate this shortage.

An aerial view of the Grand Ethiopian Renaissance Dam

President Ruto’s enthusiasm for the agreement reflects Kenya’s commitment to economic development. The GERD, located in the Benishangul-Gumuz region, symbolizes Africa’s capacity for self-reliance and progress. By leveraging the dam’s power, Kenya can accelerate its industrialization agenda, strengthen regional co-operations, and enhance energy security.

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Kenya already imports 3,990 megawatts-hours per day of electricity from Ethiopia under a signed PPA of 200 megawatts and plans to increase this capacity to 400 megawatts by the end of 2026. The additional power from the GERD would further solidify Kenya’s energy landscape and drive economic growth.

A section of The Grand Ethiopian Renaissance Dam

As Kenya looks to unlock its economic potential, the partnership with Ethiopia offers immense promise for Kenya’s economic advancement. By harnessing the benefits of the GERD, Kenya can stimulate sustainable growth, create jobs, and enhance its competitiveness.

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President Ruto’s enthusiasm for the PPA highlights the potential benefits of this partnership. This partnership is a significant step towards unlocking Kenya’s economic potential and driving sustainable growth. The inauguration ceremony was attended by several leaders, including Presidents from Djibouti, Somalia, and South Sudan, as well as Prime Ministers from Barbados and Eswatini, and the Africa Union Commission chair.