Ruto Hints at Signing Crucial Deal With Ethiopia

President William Ruto has announced plans to sign a new power purchase agreement with Ethiopia to build on the country’s growing energy partnership with its northern neighbour.
Ruto announced on Tuesday, September 9, during the inauguration of the Grand Ethiopian Renaissance Dam (GERD), a landmark project tipped to change power generation in Ethiopia, that the government is considering a review of the current electricity purchase agreement.
While describing the GERD as a “blueprint for similar projects across Africa”, the President highlighted the importance of clean energy investments backed by multilateral partnerships, as he admitted he would look into more collaborations with Ethiopia for green energy.
“I have had a conversation with the Prime Minister, and we will have an extended conversation on whatever reserve power is available from this dam,” Ruto said.
“We are ready to sign a power purchase agreement so we can take some of the power from this dam.”
By early 2025, Ethiopia was supplying 265 megawatts of power to Kenya daily in a move aimed at supporting efforts to stabilise the national grid. According to Ruto, the goal of the talks is to double the power imports from Ethiopia in the near future.
Kenya’s energy ties with Ethiopia have been cemented through a 25-year power purchase agreement, which started in 2022.
Under the deal, power from Ethiopia is transmitted through a High Voltage Direct Current (HVDC) interconnector stretching 1,045 kilometers into the country. Ethiopia has a converter station at Wolayta Sodo, while Kenya has one at Suswa. These stations convert electricity from AC to DC for efficient transmission and back to AC for local distribution.
Beyond Ethiopia, Kenya has also built a network ofpower purchase agreementswith other neighbouring countries as part of a broader regional energy integration strategy.
Countries like Uganda also export hydropower to Kenya during peak demand via a 220 kV transmission line, which strengthens grid resilience on both sides. There is also an energy cooperation with Tanzania.
The president’s plans to tap into more cross-border power projects come even after a recent report claimed the country lost Ksh4.5 billion due to a botched cross-borderelectricity powerline project undertaken by a Spanish company.
According to reports, the tender for the construction of a 132-kilometre, 400 kV double-circuit power line from Lessos in Kenya to Tororo in Uganda was awarded to the Spanish company in 2016. However, the government later terminated the contract, prompting the Spanish company to seek legal intervention.
During the court process, the judge ruled in favour of the private firm, ordering Kenya to pay Ksh4.5 billion in arbitration.