KenGen Signals Possible Drop in Power Costs After Rise in Dam Water Levels

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NAIROBI, Kenya — Kenya Electricity Generating Company has signaled a possible reduction in electricity costs for households and businesses following a sharp rise in water levels across major hydroelectric dams that has boosted hydropower generation.

In its latest dispatch report released on Thursday, the power producer said improved hydrological conditions at the Seven Forks cascade and other hydro stations had significantly strengthened electricity generation and stabilised supply on the national grid.

According to KenGen, hydro generation surpassed projected output levels in recent days due to strong dam inflows linked to sustained rainfall.

The company reported that on April 28, its hydro plants generated 11.7 million kilowatt-hours of electricity against a projected target of 10.95 million kilowatt-hours.

The Eastern Hydros accounted for the largest share of production at approximately 9.13 million kilowatt-hours.

Reservoir levels across key dams were also reported to be stable and comfortably above minimum operating thresholds. Masinga Dam was recorded at 1,056.54 metres, Kamburu Dam at 1,006.07 metres, Gitaru Dam at 923.69 metres, and Kindaruma Dam at 780.28 metres.

KenGen attributed the improved performance to continued rainfall and efficient water management across the cascade system, allowing the company to maximise hydropower production while maintaining operational safety standards.

The utility said the strong hydro performance had reduced reliance on thermal power generation, which is typically more expensive and contributes significantly to high electricity costs.

Ahmed Issack said the improved reservoir levels could positively influence electricity pricing trends if the conditions persist.

“Strong reservoir levels averaging about 99 per cent of operating capacity position us to continue maximising hydropower generation, the cheapest source of electricity on Kenya’s grid,” Issack said.

“This gives the country greater flexibility to expand renewable supply while reducing reliance on more expensive thermal generation,” he added.

The remarks come amid growing public concern over the cost of electricity in Kenya, where consumers have faced fluctuating power bills driven by fuel costs, foreign exchange adjustments, and dependence on thermal plants during dry seasons.

At the same time, concerns have emerged over the possibility of flooding downstream of the Seven Forks dams due to the rising water levels. However, Issack assured the public that the company had deployed sufficient measures to manage the reservoirs safely and avoid uncontrolled spillages.

KenGen said its engineers were implementing a robust water management programme to ensure reservoirs remain within safe operating ranges even as inflows continue to increase.

According to company data, KenGen has an installed generation capacity of 1,786 megawatts, with more than 90 per cent sourced from renewable energy, including hydroelectric power at 826 MW, geothermal at 754 MW, and wind energy at 25.5 MW.

The improved hydro performance is expected to strengthen Kenya’s renewable energy ambitions while potentially easing pressure on consumers if lower generation costs are reflected in future electricity tariffs.

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