NAIROBI, Kenya- The Kenya Electricity Generating Company (KenGen) says it is ready to sell power directly to large industrial consumers, potentially ending decades of reliance on Kenya Power as the sole buyer, as regulators prepare to operationalise open access regulations.
KenGen officials told reporters the state‑owned power generator, which produces roughly two‑thirds of Kenya’s electricity, is prepared to pivot to direct supply once the Energy and Petroleum Regulatory Authority (EPRA) finalises rules to implement provisions of the Energy Act 2019 that allow power producers to sell directly to customers consuming 1 MVA (Mega Volt‑Ampere) or more.
Under the proposed Energy Regulations 2024, large factories and heavy power users would be able to source electricity straight from generators like KenGen, paying “wheeling charges” to use the existing transmission network.
The move is partly driven by growing financial strain on KenGen from delayed payments by Kenya Power.
As of June 2025, Kenya Power owed KenGen about Sh16.65 billion, and payment delays have nearly tripled beyond the agreed 40‑day credit window, putting pressure on the generator’s working capital and threatening its financial stability.
Industry insiders say allowing KenGen to bypass the traditional single‑buyer model could help the company diversify revenue, improve cash flows and introduce competition in a market long dominated by Kenya Power’s distribution monopoly.
Manufacturers and industry groups such as the Kenya Association of Manufacturers have backed open access reforms, arguing that direct access to cheaper power would lower production costs and boost competitiveness.
However, KenGen’s transition to direct sales remains on hold as EPRA has yet to announce a timeline for finalising the open access regulations. KenGen leaders say they are ready to move as soon as the framework is in place.
