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KenGen Hints at Possible Drop in Power Prices as Hydro Generation Surges Nationwide

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The Kenya Electricity Generating Company (KenGen) has signaled a potential drop in electricity costs for households and businesses, following a significant rise in water levels across key hydroelectric dams that has boosted power generation output nationwide.

The utility firm says the improved hydrological conditions at the Seven Forks cascade and other hydro stations have strengthened the electricity supply, easing pressure on the national grid.

In its latest dispatch report issued on Thursday, April 30, KenGen confirmed that hydro generation had exceeded expectations, with production levels rising above projected targets in recent days due to optimal dam inflows.

The company noted that on April 28, its main hydro plants generated 11.7 million kilowatt-hours against a forecast of 10.95 million kilowatt-hours, with the Eastern Hydros contributing the bulk at approximately 9.13 million kilowatt-hours.

At the same time, reservoir levels were also reported to be strong and stable, with Masinga Dam recorded at 1,056.54 metres, Kamburu at 1,006.07 metres, Gitaru at 923.69 metres, and Kindaruma at 780.28 metres, all comfortably above minimum operating thresholds.

KenGen attributed the improved performance to sustained rainfall patterns and efficient water management practices across the cascade system, which have allowed the company to maximise hydropower output while maintaining operational safety.

The firm further indicated that the current conditions place its hydro system at nearly optimal capacity, a position that has stabilised the grid supply and reduced reliance on expensive thermal generation methods.

As a result, KenGen Acting MD and CEO Ahmed Issack said the strong hydro performance could have a direct impact on electricity pricing trends in the coming months 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. This gives the country greater flexibility to expand renewable supply while reducing reliance on more expensive thermal generation,” Issack said.

Meanwhile, amid reports that the water levels could pose a threat to communities living downstream of the Seven Folks, Issack assured that the company is deploying all the necessary resources to avoid spillage risks despite the rising water levels.

Further, KenGen assured Kenyans that its engineers run a robust water management program designed to keep reservoirs within safe operating ranges, and that even when Masinga nears maximum levels, the company does not expect uncontrolled spilling so long as inflows remain manageable.

According to statistical records, KenGen has an installed generation capacity of 1,786 megawatts (MW), of which over 90 per cent is drawn from hydro at 826 MW, geothermal (754 MW), and wind (25.5 MW)-Kenyans.co.ke.

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