Ethiopia and Kenya have taken a new step in strengthening their energy cooperation. The two countries have signed an agreement to increase electricity trade and further enhance the interconnection of power grids across East Africa.
Signed between the Ethiopian Electric Utility (EEU) and the Kenya Power and Lighting Company (KPLC), the agreement provides for the supply of Ethiopian electricity to Kenya's public utility at a rate of approximately $0.15 per kilowatt-hour.
Through this partnership, both governments aim to ensure a more reliable electricity supply in border regions, expand cross-border energy trade, and support regional economic growth through a more stable power supply.
Speaking at the signing ceremony in Addis Ababa, Getu Geremew, Director General of the EEU, said the agreement reflects the shared ambition of building a more integrated East Africa, emphasizing that energy is a key driver of sustainable development and regional cooperation.
The initiative builds on the rapid expansion of Ethiopia's energy sector. Over the past seven years, the country's installed power generation capacity has increased from 4,462 megawatts to 9,752 megawatts, largely driven by the commissioning of the Grand Ethiopian Renaissance Dam (GERD), Africa's largest hydroelectric project.
Already exporting electricity to Djibouti, Kenya, Tanzania, and Sudan, Ethiopia is also negotiating new supply agreements with South Sudan, while Somalia has expressed interest in future electricity imports. In the longer term, Addis Ababa aims to expand its electricity exports to other parts of the continent by leveraging Africa's growing interconnected power networks.