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Add to Preferred SourcesThe African Development Bank (AfDB) has approved a US$16.5 million loan to help build a new 35-megawatt geothermal power plant in Kenya, the Bank said. The OrPower Twenty-Two (OTTL) project will expand Kenya’s renewable energy capacity, cutting reliance on costly diesel generation and driving forward the country’s goal of 100 percent clean energy by 2030.
The plant will be built in the Menengai geothermal field near Nakuru, about 180 kilometers northwest of Nairobi. It is the third geothermal facility in the area, joining the Sosian Menengai and Globeleq Menengai plants—both producing 35 MW each. Together, the three projects will unlock the field’s full 105 MW potential, developed through earlier AfDB financing to the state-owned Geothermal Development Company (GDC). GDC supplies steam to the private developers, while Kenya Power and Lighting Company will purchase the electricity under a 25-year power agreement.
Once operational, the new plant will generate about 301 gigawatt-hours of clean, reliable energy each year—enough to power hundreds of thousands of homes. It will also help drive electricity rates down by supplying low-cost baseload power and is expected to avoid 1.9 million tonnes of greenhouse gas emissions over its lifespan.
“The Menengai model shows how public-private collaboration can deliver clean power at scale,” said Wale Shonibare, the Bank’s Energy Director. “Government investment in resource development makes it possible for private companies to build the generation capacity Kenya needs, while securing stable revenues and reinvestment for future projects.”
OTTL Director Qi Jingwen said the plant, built with proprietary next-generation geothermal technology, will contribute directly to global climate goals.
“Support from international financial institutions like the AfDB gives us the confidence to help expand Africa’s green energy future,” he said.
The project will also receive complementary financing from the International Finance Corporation, bringing total debt funding to about US$64 million of the US$92 million project cost. The facility aligns with Kenya’s Mission 300 Energy Compact, which aims to nearly double the country’s geothermal capacity—from 940 MW today to 1,824 MW by 2030.