Without geothermal energy, it would be very hard for this country to meet its power demand.
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Summary sheet
Release date
7 January 2016
Status
Reference
Signed | 08/09/2017
20150459
Project name
Promoter - financial intermediary
OLKARIA I GEOTHERMAL EXTENSION
KENYA ELECTRICITY GENERATING COMPANY LTD
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 72 million
EUR 311 million
Description
Objectives
The project consists of the extension of the existing 140 MW Olkaria I Unit 4 & 5 geothermal power plant with an additional 70 MW turbine (Unit 6), the necessary wells, steam-gathering system and interconnection facilities.
The project will help meet growing electricity demand at a competitive cost. Its economic benefits include increased power generation, improved security of supply (geothermal power is unaffected by annual hydrological conditions), reduced national dependence on imported fossil fuels for electricity generation, fewer emissions associated with conventional thermal generation and additional operational flexibility with the greater Olkaria geothermal generation park.
Environmental aspects
Procurement
If located inside the EU, the project would fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU, requiring a screening decision by the competent authority. Kenyan law requires a full EIA. An environmental and social impact assessment (ESIA) has been established for the new unit and has been approved and a respective licence issued by the NEMA (National Environmental Management Authority). As with the other units of Olkaria I power station, the project lies in the Hells Gate National Park, where there is no human settlement. The Bank will ensure that the project complies with its environmental and social standards.
The promoter is a utility majority-owned by the Government of Kenya. For the project it will adopt open competitive tendering procedures and envisages publication in the Official Journal of the EU for the main contracts. The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement.
Comments
The Government of Kenya, in its Vision 2030 development programme launched in 2008, has identified energy as being one of the key enablers to attain 10% GDP growth target. The project will provide renewable energy to bridge the existing gap between energy demand and supply in Kenya and it will help mitigate the impact of climate change. The investment is in line with the Sustainable Development Goals (SDGs), especially SDG 7 "Ensure access to affordable, reliable, sustainable and modern energy for all".
Related documents
Documents
Non-Technical Summary (NTS) - OLKARIA I GEOTHERMAL EXTENSION - For the drilling of 80 Geothermal Steam production Wells
Publication Date
23 Mar 2016
Document language
Main Topic
Lending
Document Number
65357527
Document Focus
Environmental Information
Document Type
Project Number
20150459
Sector(s)
Countries
Publicly available
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Non-Technical Summary (NTS) - OLKARIA I GEOTHERMAL EXTENSION - NTS of the ESIA for the Additional Unit 6 Powerplant
Publication Date
22 Mar 2016
Document language
Main Topic
Lending
Document Number
65362518
Document Focus
Environmental Information
Document Type
Project Number
20150459
Sector(s)
Countries
Publicly available
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Environmental and Social Impact Assessment (ESIA) - OLKARIA I GEOTHERMAL EXTENSION - EIA for the drilling of 80 Geothermal Steam Production Wells
Publication Date
22 Mar 2016
Document language
Main Topic
Lending
Document Number
65369919
Document Focus
Environmental Information
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Project Number
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Sector(s)
Countries
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Environmental and Social Impact Assessment (ESIA) - OLKARIA I GEOTHERMAL EXTENSION - 70MW Additional Unit 6 geothermal powerplant
Publication Date
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Main Topic
Lending
Document Number
63951928
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Sector(s)
Countries
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Environmental and Social Data Sheet (ESDS) - OLKARIA I GEOTHERMAL EXTENSION
Publication Date
25 Jul 2016
Document language
Main Topic
Lending
Document Number
67483700
Document Focus
Environmental Information
Document Type
Project Number
20150459
Sector(s)
Countries
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Environmental and Social Completion Sheet (ESCS) - OLKARIA I GEOTHERMAL EXTENSION
Publication Date
24 Dec 2025
Document language
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Document Number
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Document Focus
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Link to source
Other links
Inside the project
How and Why
Africa’s energy leader
Why
- Geothermal power offers clean energy
- Reduces fossil fuel emissions
- Helps Kenya become an African leader in renewable energy
How
- Kenya expands geothermal energy and exports technical knowledge
- Kenya’s Vision 2030 plan aims for country to use 100% renewable energy by 2030
- The success of geothermal helps Kenya invest in other green energy, such as hydropower and solar parks
Sectors & Countries
Story
Leaping past the climate polluting stage
He grew up in rural Kenya without power in a home lit by smoky lanterns, but Peketsa Mangi is now general manager of geothermal development in Kenya at the Olkaria site, one of the largest geothermal operations in the world.
Since the 1950s, “Kenya is the pioneer of geothermal progress in Africa,” says Mangi, who is standing in the middle of a lush field in Kenya’s Great Rift Valley with plumes of thick steam belching noisily up from the earth behind him.
Olkaria’s geothermal plants tap the earth’s energy by drilling several thousand metres into the ground, then capturing steam and transporting it through pipelines to drive turbines that create electricity. Big white pipes carry water or steam all around the Olkaria complex, which covers about 70 square kilometres. The pipes sit on stilts to allow animals to pass underneath, and even have loops that allow tall giraffes to wander freely. In the mornings, the giraffes eat breakfast among the trees near the geothermal buildings.
Kenya has taken a lead not just in the energy sector, but also in empowering women in this field and recognizing the resources of women.
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