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KenGen has completed the rehabilitation of the Olkaria I geothermal power station in Naivasha, raising its capacity from 45MW to 63MW, the company announced at its recent annual general meeting, ThinkGeoEnergy reported on October 30, 2026. Olkaria I was the first geothermal power plant in Africa.
What changed at Olkaria I geothermal plant
Work started in 2023. The project replaced the generators and turbines on all three units, which date back to the plant’s original commissioning in the early 1980s. Unit 3 came back online in May 2026 and Unit 2 by July 2026, according to the contractor. KenGen’s July financial report put the project at 92% complete.
Beyond the three units, engineers:
- redesigned the steam field pipeline layout;
- upgraded separators, control valves, cooling systems and exhaust stations;
- installed new condensers, circulating water pumps and cooling towers to replace ageing equipment.
The engineering, procurement and construction contractor was Shandong Electric Power Construction No. 3 (SEPCO3), a subsidiary of China Power Construction Corporation. Italian firm Steam Srl acted as owner’s engineer.
“With a rehabilitation project, much of the existing structure has to remain, so you have to find solutions within the space and layout already available,” SEPCO3 deputy project manager Zhang Yang told Xinhua.
Why 18MW more matters
The extra 18MW comes from more efficient machinery using steam from the same field. Geothermal is baseload power: it runs day and night regardless of rain or sun, which makes it valuable when hydro dams are low. Kenya has leaned on electricity imports from Uganda and Ethiopia to cover shortfalls, and every megawatt of local baseload reduces that need.
Part of a KSh15.5bn investment
The Olkaria I project is part of about KSh15.5 billion (US$119.3 million) that KenGen has invested in power infrastructure over 2025 and 2026. The same programme includes a battery storage project, the redevelopment of a hydropower station and a proposed 42.5MW solar plant.
What it means for KenGen shareholders
More capacity at an existing site usually means more energy sold for little extra running cost, which supports earnings. KenGen recently closed its books for a KSh0.75 per share dividend payable on January 21, 2027; see our KenGen dividend history and payment dates. The company is also courting investors for further geothermal expansion, as we reported from the Olkaria clean energy conference, and has named Ronoh Kibet Charles as its next CEO.
A short history of Olkaria
Kenya began drilling for geothermal steam at Olkaria in the 1950s and the first unit at Olkaria I was commissioned in 1981, with two more following by 1985. Since then the field has grown to several plants, and geothermal now supplies a large share of the electricity Kenyans use every day. Rehabilitating the oldest plant rather than building new capacity is cheaper because the wells, roads and grid connections already exist.
FAQ
What is the capacity of Olkaria I after rehabilitation?
63MW, up from 45MW.
Who upgraded Olkaria I?
SEPCO3, a subsidiary of China Power Construction Corporation, was the EPC contractor, with Steam Srl as owner’s engineer.
Where is Olkaria I?
In the Olkaria geothermal field in Hell’s Gate, Naivasha, Nakuru County.
When did the Olkaria I rehabilitation start?
In 2023. Units 3 and 2 returned to service in May and July 2026.
Updated October 31, 2026.
Related: KenGen profit dips 1.2% to KSh10.35bn as capital spending rises to KSh15.5bn and debt falls
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