By Catherine Zawadi
The African Development Bank Group has approved a $16.5 million (KES 2.1 billion) loan to support the development of the 35-megawatt OrPower Twenty-Two (OTTL) Geothermal Power Plant at the Menengai geothermal field in Kenya, marking a fresh boost to the country’s clean energy transition.
The project is being developed by OrPower Twenty-Two, an independent power producer. It will become the third geothermal power plant at Menengai, alongside the operational 35 MW Sosian Menengai plant and the 35 MW Globeleq Menengai project, which is still under construction with separate financing from the Bank.
Together, the three projects are expected to unlock the full 105 MW potential of the first phase of the Menengai geothermal field.
The field itself was developed through earlier financing of $145 million provided by the African Development Bank to the state-owned Geothermal Development Company (GDC).
Under the project structure, GDC will drill, produce, and supply steam to the new plant, while Kenya Power will serve as the sole off-taker under a 25-year power purchase agreement.
Beyond increasing generation capacity, the Menengai project is expected to deliver affordable and reliable baseload power to Kenya’s national grid at one of the lowest tariffs in the country.
Once fully operational, the plant is projected to generate about 301 gigawatt-hours of clean energy annually, strengthening electricity supply stability and reducing reliance on costly diesel-fired generation.
The project is also expected to deliver major climate benefits, with greenhouse gas emissions avoidance estimated at 1.9 million tonnes over the 25-year life of the power purchase agreement.
Wale Shonibare, Director of the Bank’s Energy Financial Solutions, Policy, and Regulations Department, said the Menengai model highlights the impact of public-private collaboration in unlocking geothermal development.
He noted that government-led resource development enables private investment in power generation, while allowing GDC to secure stable revenues from steam sales and reinvest in expanding geothermal capacity nationwide.
OTTL Director Qi Jingwen said the company was honoured to be constructing the plant using independently developed, next-generation geothermal technology. He added that support from international financial institutions would enable deeper participation in the development of green energy across Africa.
The financing aligns with the AfDB’s energy priorities and supports Kenya’s broader development agenda under Pillar I of the Mission 300 Energy Compact. The project contributes to the country’s goal of increasing geothermal capacity from 940 MW to 1,824 MW by 2030 and advancing the transition to 100 percent clean energy through private sector investment.
The African Development Bank’s loan will complement additional funding expected from the International Finance Corporation (IFC), bringing total project debt to $64.4 million out of an estimated overall project cost of $91.9 million.
