Kenya’s agenda to expand baseload power capacity through geothermal expansion is progressing, with the African Development Bank (AfDB) approving a $16.5 million loan to support the 35 MW OrPower Twenty-Two (OTTL) Geothermal Power Plant in the Menengal geothermal field, northwest Nairobi.
AfDB’s funding will be combined with an upcoming debt from the International Finance Corporation to fast-track the $91.9 million power plant. The country plans to increase its geothermal capacity from 940 MW to 1,824 MW by 2030.
Developed by independent power producer OTTL, the plant will source steam from wells operated by the government-owned Geothermal Development Company (GDC) within the Menengal field and power the grid under a 25-year power purchase agreement with Kenya Power and Lighting Company.
At full capacity, the power plant is expected to generate approximately 301 GWh per year, contributing to Kenya’s goals of energy diversification and affordability. The project will also support Kenya’s renewable energy transition, avoiding 1.9 million tons of carbon emissions over the 25-year PPA period.
Wale Shonibare, Director, Energy Financial Solutions, Policy, and Regulations Department, AfDB, highlighted that the project “demonstrates the power of public-private collaboration, where government-led resource development unlocks private investment in geothermal generation, delivering mutual benefits: GDC secures stable revenues from steam sales, allowing it to reinvest in expanding geothermal development nationwide, while the private sector drives efficient power generation.”
The OTTL plant complements the 35 MW Sosian Menengai Geothermal Plant and the 35 MW Globeleq Menengai Geothermal Project, currently under construction in the Menengai geothermal field.