Kenya relied on Ethiopia for 83% of its imported electricity in 2025 alone, highlighting Addis Ababa’s growing role as a regional power exporter, as reported by Kenya’s Capital FM radio.

The arrangement has provided Nairobi with a more stable and affordable energy mix, reducing its dependence on costly fuel-based generation. According to the broadcaster, the shift has helped Kenya save about 10 million US dollars a year.

The two countries formalised their power trade in 2023 under a supply agreement that allows Ethiopia to transmit up to 200 megawatts during peak demand.

Ethiopia, which generates the bulk of its electricity from hydropower, has positioned itself as a regional supplier, leveraging large-scale dams including the Grand Ethiopian Renaissance Dam (GERD). Beyond Kenya, it already exports power to Djibouti and Sudan, with Tanzania set to be connected under a regional interconnection plan.

For Ethiopia, electricity exports represent a growing source of foreign exchange revenue, while for Kenya they offer a hedge against volatility in global fuel markets. The partnership also fits within the Eastern Africa Power Pool’s ambition to create a fully integrated regional grid.