The electric power sector in Kenya relies largely on renewable energy sources such as hydro power and geothermal, with the supplement of imported fossil fuels to meet the increasing demand of electricity. In 2008, total generation reached 6,460 million kilowatt hours (MkWhs), comprising its main energy sources from hydroelectric power (50%), oil (33%) and geothermal (16%). A hydro-led power sector frustrated Kenya with the production declined of 9% due to drought. Oil-fired power plants play an auxiliary role and increased the generation by 23% from 2007 to fill in the shortage of hydroelectric power. Increasing dependency on imported oils may raise electricity prices and affect other economic activities negatively. Geothermal is gaining attention with the potential of 4000 MW capacities unexploited in Kenya. To secure the reliable supply of utilities, Kenya plans to build more power plants with the total capacity of more than 2000 MW from the variety of energy sources including geothermal, hydro, wind, coal, and diesel by 2015.

