Mombasa, Kenya. In a massive play to secure its energy future, Kenya has announced a $2.9 billion (Sh375 billion) plan to construct a 1,200 MW gas-fired power plant in the Dongo Kundu Special Economic Zone, Mombasa. The project, a collaboration between state producer KenGen and private investors, signals the country's decisive shift away from "dirty" thermal energy toward cleaner Liquefied Natural Gas (LNG).
Image of Dongo Kundu Special Economic Zone
Plugging the 600 MW Gap
The announcement comes as Kenya grapples with a surging demand for electricity, which hit a record peak of 2,439 MW in late 2025. Energy Principal Secretary Alex Wachira confirmed that the nation urgently requires an additional 300 MW by 2027 and another 300 MW by 2028 to prevent supply shortfalls.
The Dongo Kundu plant is designed to be the backbone of this expansion, utilizing imported LNG to provide a stable "baseload" that complements Kenya’s weather-dependent renewables like hydro and wind.
The 2030 Clean Energy Transition
While Kenya already generates approximately 90% of its electricity from renewable sources (led by geothermal), the remaining gap is currently filled by expensive and polluting Heavy Fuel Oil (HFO) plants.
The New Strategy:
Retirement: Older HFO plants like Kipevu I and II have already been decommissioned.
Conversion: Under the new mandate, any thermal plants with contracts extending beyond 2030—including the 120 MW Kipevu III—must be converted to run on LNG.
Goal: To eliminate HFO from the national grid entirely by 2030, aligning with Kenya’s net-zero carbon ambitions.
Economic Impact and the 10,000 MW Vision
The $2.9 billion project is a central pillar of President William Ruto’s broader goal to quadruple Kenya’s total installed capacity to 10,000 MW. By integrating LNG, the government aims to lower the "fuel cost charge" on electricity bills, which has historically fluctuated based on global oil prices.
"We are moving decisively toward cleaner energy sources," PS Wachira noted, emphasizing that the project is currently seeking transaction advisers to structure the deal and attract international financing.
Regional Significance
The choice of Dongo Kundu is strategic. As a flagship Special Economic Zone, the area is poised to become a regional industrial hub. A stable 1,200 MW supply will not only power the coast but also provide the energy security needed to attract large-scale manufacturing to the region, positioning Mombasa as a competitor to other major Indian Ocean ports.