AfDB Financing Enables Kenya’s Geothermal Development, Adding 35 MW of Renewable Power and Cutting Carbon Emissions

The African Development Bank Group (AfDB) has approved a $16.5 million loan to support the development of the 35 MW OrPower Twenty-Two (OTTL) Geothermal Power Plant in Kenya, a flagship project aimed at increasing baseload generation and accelerating the country’s clean energy transition.

The plant, being developed by OTTL, is located in the Menengai geothermal field, north of Nakuru, approximately 180 km northwest of Nairobi. It will be the third power plant in the field, complementing the operational 35 MW Sosian Menengai Geothermal Plant and the 35 MW Globeleq Menengai project, the latter currently under construction with separate AfDB financing.

Together, these projects will unlock the full 105 MW potential of the Menengai field’s first phase. The field itself was initially developed using $145 million in financing from AfDB to the Geothermal Development Company (GDC), a government-owned entity responsible for drilling and supplying high-quality steam to the new plant.

The Kenya Power and Lighting Company (KPLC), also state-owned, will act as the sole off-taker under a 25-year Power Purchase Agreement (PPA). Once operational, the plant is expected to generate approximately 301 GWh of reliable, clean energy annually, delivering affordable baseload electricity at one of Kenya’s lowest tariffs.

The project is expected to significantly enhance supply stability, diversify Kenya’s energy mix, and reduce reliance on expensive diesel-powered generation. It will also contribute to climate goals, avoiding an estimated 1.9 million tonnes of greenhouse gas emissions over the 25-year PPA period.

Wale Shonibare, Director of AfDB’s Energy Financial Solutions, Policy, and Regulations Department, said the Menengai model exemplifies the power of public-private collaboration, enabling government-led resource development to attract private investment in geothermal generation.

“We are honoured to be constructing the OrPower Menengai Geothermal Power Plant using independently developed, next-generation geothermal technology,” said Qi Jingwen, Director of OTTL. “Support from international financial institutions will enable deeper participation in developing new green energy projects across Africa.”

The AfDB financing complements additional support expected from the International Finance Corporation (IFC), bringing the total project debt to $64.4 million of an estimated $91.9 million total cost. The project aligns with Kenya’s Mission 300 Energy Compact, which aims to expand geothermal capacity from 940 MW to 1,824 MW by 2030, advancing the country’s goal of a 100% clean energy transition through private sector participation.