Kenya Power and Lighting Company (KPLC) has signed a new electricity supply agreement with Ethiopia's state-owned utility, securing power at approximately KSh 20 per kWh.

The deal, signed on July 10, 2026, in Addis Ababa, aims to boost cross-border electricity trade and expand reliable power supply to border communities.Kenya will pay ETB 24.07 per kWh (about US$0.15 or KSh 20) plus a monthly demand charge of ETB 1,010.89 (KSh 800).This comes as Kenyan households face retail tariffs between KSh 28-32 per unit, with diesel-generated power costing up to KSh 35 per kWh.The agreement strengthens Kenya's reliance on Ethiopian hydropower, which now supplies over 10% of Kenya's grid.It also supports efforts to create a regional power pool across East Africa.The deal benefits Northern Kenya's border towns, extending electricity access to areas currently served by diesel generators.Ethiopia remains Kenya's second-largest power supplier after KenGen, highlighting the strategic importance of this cross-border collaboration.