Kenya Electricity Generating Company (KenGen) is set to directly sell electricity to industries located in its park in Naivasha, as the firm moves to tap into a market opened up by recent legal changes.
KenGen disclosed that it will apply for a licence to transmit and distribute electricity to the industries setting base at its Green Energy Park, located in Olkaria. The application will be made on June 2, 2026.
The State-owned power producer is banking on the recently-gazetted Energy (Electricity Market, Bulk Supply and Open Access) Regulations of 2026 that have opened doors for electricity generating firms to directly sell electricity to large consumers.
KenGen is betting on direct sale of electricity at prices lower than the retail tariff, as one of the incentives to attract investors at its Green Energy Park, where 8,292 acres are up for grabs.
But, the direct sale will edge out Kenya Power, which has for years been a monopoly in the distribution of electricity in the country. The exclusive rights were ended this month following the gazettement of the energy regulations.
“Notice is hereby given that KenGen, a public limited company, pursuant to the provisions of section 119(3) of the Energy Act, 2019 will on June 2nd 2026 make an application to the Energy and Petroleum Regulatory Authority (the regulator) for the electric power transmission and distribution licences for KenGen Green Energy Park,” the company in a notice.
The legal changes allow power producers, like KenGen, to apply for a licence to directly sell power to the big consumers. The producers will pay wheeling charges to Kenya Power and Kenya Electricity Transmission Company for use of their lines.
KenGen’s Green Energy Park was declared a special economic zone (SEZ) last year, setting the stage for investors to enjoy a number of incentives, including cheap electricity and tax breaks.
SEZs have emerged as a strong selling point in Kenya’s quest to attract investors and boost efforts to create jobs and address the unemployment crisis.
The zones offer investors with cheaper electricity, tax-breaks and one-stop clearance shops, among others.
At least four investors have already set shop at the park and some are expected to start operations by next year.
The four are Konza Technopolis Development Authority, Kaishan Group Limited of China, Synergetic Development Group and Aquilastar Corporate Investment Company.
The Green Energy Park offers KenGen a major revenue diversification avenue as the company seeks to remain on the profitability path. KenGen reported a net profit of Sh10.4 billion in the year to June 2025 compared to Sh6.7 billion the previous year.
