The Cabinet of the Republic of Kenya has granted approval for the 80.3-MW Olkaria VII geothermal power project, to be executed by state-owned power company KenGen. The company stated that they are targeting for the facility to start supplying to the national grid by June 2027.
The Olkaria VII facility is expected to tap into 19 production wells, with a provision for seven more wells over a 25-year lifespan. In late 2024, regulatory filings indicated that KenGen is planning to invest an estimated Ksh 32 billion (approx. 248 million) on the project. KenGen had previously initiated a call for proposals for a feasibility study of the Olkaria VII power plant back in 2022.
The approval for Olkaria VII was announced during a Cabinet meeting chaired by Kenyan President William Ruto on 29 July. During the same session, the Cabinet also approved Phase III of the Last Mile Connectivity Project, which aims to expand electricity access to 180,500 new customers in Kenya. The project will also deploy idle transformers in underserved regions and upgrade strained substations. Launched in 2015, the Last Mile initiative supports the increase in national electricity access beyond the current 75%.
These projects are being supported by the European Investment Bank and the Government of Japan. Both initiatives are part of Kenya’s long-term strategy to expand access to clean energy and reduce dependence on fossil fuels. According to the Kenya Energy Sector Roadmap 2040, electricity demand is projected to grow by at least 100 MW annually.