91-day T-bill8.750%▲ 0.002
182-day T-bill8.851%▼ 0.008
364-day T-bill9.029%▲ 0.002
Central Bank Rate8.75%07/10/2026
Inflation7.3%October 2026
Top MMF yield10.50%Madison
Sources: CBK auction, 2 Nov 2026 value date (change vs 26 Oct); CBK key rates; fund managers' published yields, as at 12 Nov 2026.

Lodwar grid connection to end costly KSh900m diesel bill

Lodwar grid connection: Kenya Power says a Lokichar-Lodwar line will replace diesel generators that cost about KSh900m a year to run. What changes.

Lodwar grid connection: Kenya Power technicians working on a substation
Kenya Power technicians at work on a substation. Photo: Kenya Power

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The Lodwar grid connection will replace diesel generators that cost Kenya Power an estimated KSh 900 million (about USD 6.9 million) a year to run, the utility said on 11 November 2026. Kenya Power is extending a power line from Lokichar to Lodwar, the Turkana County headquarters, so the town can draw electricity from the national grid instead of relying on diesel generation. The utility says the Lodwar grid connection should pay for itself in about a year of avoided diesel costs.

According to Kenya Power, the cost of the connection is “almost equivalent to what is spent running the generators in just one year.” More than 80,000 residents stand to benefit from a more reliable and sustainable supply.

Why the Lodwar grid connection matters

Lodwar is one of the towns Kenya Power supplies from isolated diesel power stations rather than the national grid. Running those generators costs an estimated KSh 900 million every year, the company said in a statement on its official X account.

“Connecting Lodwar to the national grid could change that equation,” Kenya Power said. “The extension of the power line from Lokichar to Lodwar will reduce reliance on diesel generation.”

The company said the connection will also give the town the capacity to meet its growing energy demand and support its economic development. Kenya Power has given no budget figure for the Lodwar grid connection itself. It has not published the length of the line, its voltage, the total project cost or a date for switching Lodwar to grid power.

Lodwar grid connection: Kenya Power team at the Cemtech cement plant substation in Eldoret
Kenya Power board and management at the Cemtech plant in Eldoret. Photo: Kenya Power

What it means for Kenya Power's costs and customers

For Kenya Power, the key number in the Lodwar grid connection is the payback. If the connection costs about the same as one year of generator running costs, as the company says, the investment would be recovered in roughly a year of avoided diesel spending, before counting any growth in power sales.

For homes and businesses, the Lodwar grid connection means a supply that is meant to be more reliable and able to carry larger loads, which matters for businesses that need a steady supply to grow. Kenya Power has not said whether the switch will change bills, since all customers in the same tariff band pay the same regulated tariff set by the Energy and Petroleum Regulatory Authority (EPRA). Our guide to electricity charges per unit explains how the tariff is built, and our explainer on Kenya Power new connection costs covers what a new customer pays.

Kenya Power's North Rift push: Cemtech and Kesses solar

The Lodwar grid connection update came as Kenya Power’s board and senior management toured operations in the North Rift. On 11 November they visited Devki Group’s Cemtech cement grinding plant in Jua Kali, Eldoret. Kenya Power said the plant currently draws about 6 MW through a dedicated 132 kV line and is “poised to become one of Kenya Power’s major industrial customers in the North Rift.”

On 12 November the team toured the Alten, Cedate and Selenkei solar power plants in Kesses, which have a combined generation capacity of 120 MW. The board and management also held a strategy review retreat in Eldoret focused on “strengthening commercial performance and enhancing the long-term sustainability of the business.”

Kenya Power leaders and Cemtech officials at the cement grinding plant in Eldoret
Kenya Power and Cemtech officials at the Eldoret plant. Photo: Kenya Power

Large industrial users such as cement plants buy power in bulk and help spread the cost of the network. Shareholders tracking the utility can read our Kenya Power dividend history and our comparison of KenGen vs Kenya Power shares. Suppliers can see how to register for Kenya Power tenders.

Frequently asked questions

What is the Lodwar grid connection?

It is Kenya Power’s extension of a power line from Lokichar to Lodwar so the town can be supplied from the national grid instead of diesel generators.

How much does Kenya Power spend on diesel in Lodwar?

Kenya Power estimates the annual operating cost of the diesel generators supplying Lodwar at KSh 900 million.

How many people will benefit?

Kenya Power says more than 80,000 residents stand to benefit from a more reliable and sustainable electricity supply.

When will Lodwar be connected to the grid?

Kenya Power has not published a completion date. It said the connection cost is almost equal to one year of generator running costs.

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About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at one of Kenya's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

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