The African Development Bank Group has approved a loan of 16.5 million US dollars to support the development of the OrPower Twenty-Two geothermal power plant in Kenya, a 35 megawatt project located in the Menengai geothermal field near Nakuru. This decision, finalised in November, marks a significant milestone in Kenya’s ambition to deepen its renewable energy infrastructure and enhance its energy independence through sustainable baseload power.
The project, developed by OrPower Twenty-Two Limited, an independent power producer, is the third geothermal power station situated in the Menengai field. It complements two parallel ventures: the operational 35 megawatt Sosian Menengai plant and the under-construction 35 megawatt Globeleq Menengai facility, which is also backed by African Development Bank financing. Collectively, these initiatives are designed to unlock the full 105 megawatt potential of the first phase of Menengai’s geothermal capacity.
This development builds upon a previous investment of 145 million US dollars extended by the Bank to Kenya’s Geothermal Development Company, a state-owned enterprise responsible for drilling and supplying geothermal steam. The new plant will utilise steam provided by this government entity, ensuring a public-private synergy in resource management and project execution. The Kenya Power and Lighting Company, also a government-owned utility, will act as the sole off-taker for the generated power under a 25-year Power Purchase Agreement.
Once operational, the plant is expected to generate approximately 301 gigawatt hours of electricity annually. This reliable, clean energy source is positioned to lower electricity costs across Kenya by replacing expensive diesel-based power and diversifying the national energy mix. In terms of environmental impact, the facility is projected to avoid around 1.9 million tonnes of greenhouse gas emissions over the life of the agreement, further anchoring Kenya’s climate resilience strategy.
The project’s financial structure is expected to be strengthened through additional backing from the International Finance Corporation, with the total debt component amounting to 64.4 million US dollars against a projected overall investment of 91.9 million US dollars. This underlines a growing confidence in Africa’s geothermal potential among multilateral lenders and international investors alike.
Wale Shonibare, Director of the Bank’s Energy Financial Solutions, Policy, and Regulations Department, stated that the Menengai model exemplifies effective public-private collaboration. He highlighted how the state’s upfront investment in resource development has enabled the mobilisation of private capital into energy generation. This approach, he noted, allows Geothermal Development Company to secure predictable revenue from steam sales and reinvest in expanding geothermal exploration nationally.
Qi Jingwen, a Director at OrPower Twenty-Two, emphasised the company’s use of proprietary next-generation geothermal technologies. He noted that this initiative aligns with the firm’s mission of contributing to global environmental sustainability and acknowledged the crucial role of international financial support in expanding green energy access across the continent.
This project is also aligned with Kenya’s broader energy goals under Mission 300, an initiative that seeks to increase geothermal capacity from the current 940 megawatts to 1,824 megawatts by 2030. It reinforces national and continental efforts to transition toward clean energy through private sector engagement, technological innovation, and local resource optimisation.
Within a wider continental context, the success of the Menengai model affirms the importance of pan African investment strategies that prioritise sustainability, local value addition, and energy sovereignty. While Kenya’s geothermal programme continues to expand, it sets a replicable precedent for other African nations rich in geothermal resources yet underexplored due to infrastructure gaps and financing constraints.
Rather than projecting a singular development narrative, this initiative invites a reconsideration of African capacity not merely as a recipient of aid but as an innovator in renewable energy systems. It underscores the importance of viewing African-led infrastructure through a lens of autonomy, long-term environmental stewardship, and regional collaboration.
This investment, while specific to Kenya, is a reflection of a broader shift in energy policy frameworks across the continent that aim to reconcile economic growth with ecological sustainability. In doing so, it marks a step towards realising Africa’s potential to lead in the global energy transition through homegrown, resilient, and inclusive energy solutions.
