Kenya is considering purchasing 500 megawatts (MW) of electricity from a proposed refinery by Nigerian billionaire Aliko Dangote in Lamu, as the country explores temporary solutions to address a looming power shortage.
Kenya Electricity Generating Company (KenGen) says the proposed arrangement would provide additional electricity supply while the country works to meet rising demand. The refinery plans to generate power using petroleum coke, a carbon-rich by-product produced during oil refining.
The proposed purchase would provide a potential additional source of electricity for Kenya’s national grid at a time when reliable power supply remains important for households, manufacturers and other businesses.
Petroleum coke, commonly known as petcoke, is a solid fuel produced during petroleum refining. Its use in power generation could provide a source of electricity for the proposed industrial facility, although the environmental implications of burning the fuel would require consideration.
KenGen has described the potential arrangement as a temporary measure to address the looming power shortage. However, details on the proposed purchase agreement, including its duration, pricing, delivery arrangements and implementation timeline, have not been provided in the information available.
The proposal also raises questions about how the additional electricity would be integrated into Kenya’s power supply system and whether the arrangement would be commercially competitive with other available sources of electricity.
Kenya relies on a mix of electricity sources, including geothermal, hydroelectric, wind and solar power, alongside other generation options. Any additional supply would need to be assessed against national demand, grid requirements and the cost of delivering electricity to consumers.
The use of petroleum coke could also attract scrutiny because its combustion produces carbon dioxide and other emissions. The environmental impact would depend on the technology used, pollution-control measures and the scale of power generation.
For Kenya, the immediate consideration is whether the proposed 500MW purchase can help bridge a potential supply gap without creating excessive costs or undermining longer-term energy priorities.
The proposal remains under consideration, and further details on the refinery, the proposed electricity deal and its expected contribution to the national grid will be important in determining whether the arrangement proceeds.
