The plan is a flagship renewable energy project designed to boost Kenya’s baseload generation and accelerate its clean‑energy transition. The loan was approved in November and will help expand geothermal capacity in the Menengai field, north of Nakuru.

OTTL, an Independent Power Producer, is developing the plant as the third facility in the Menengai geothermal zone, complementing the operational 35 MW Sosian Menengai plant and the 35 MW Globeleq Menengai project, which is still under construction with separate AfDB financing. Together, the three plants will unlock the full 105 MW potential of the field’s first development phase.

The Menengai project builds on earlier AfDB financing of $145 million to Kenya’s Geothermal Development Company (GDC), a state‑owned entity responsible for drilling and supplying steam to private developers. Electricity from the new plant will be purchased by the Kenya Power and Lighting Company under a 25‑year Power Purchase Agreement.

Once operational, the OTTL is expected to generate roughly 301 GWh of clean baseload electricity annually. Officials say this will reduce Kenya’s dependence on costly diesel‑powered generation, lower overall electricity tariffs and stabilise supply. The project is also projected to cut greenhouse‑gas emissions by an estimated 1.9 million tonnes over the PPA period.

Wale Shonibare, AfDB Director for Energy Financial Solutions, said the Menengai model showcases “the power of public‑private collaboration”, providing stable revenues for GDC while enabling private‑sector‑driven power generation. OTTL Director Qi Jingwen said the company is “honoured” to deploy proprietary geothermal technology that supports Africa’s green‑energy ambitions.

The project advances Kenya’s Mission 300 Energy Compact, which targets growing geothermal capacity from 940 MW to 1 824 MW by 2030. Additional funding expected from the International Finance Corporation will bring the total project debt to $64.4 million of the estimated $91.9 million cost.

–AfDB/ChannelAfrica–