Kenya plans its first floating natural-gas powered electricity generation plant at an estimated cost of KSh39bn, to be located on a barge at Dongo Kundu in Mombasa and capable of producing up to 1,200 MW of electricity.
The cost figure comes from National Treasury estimates that investors will own and operate the plant for 30 years under a Build-Own-Operate or Build-Own-Operate-Transfer model to recoup their investment.
The plant will use liquefied natural gas (LNG) and Kenya expects supply from Tanzania under a 2021 agreement to build a pipeline from Mtwara to the port of Mombasa, as the country has no confirmed LNG reserves.
The Ministry of Energy and Petroleum said LNG-to-power projects offer a flexible, relatively fast-to-deploy and lower-carbon transitional solution that enhances energy security while supporting industrial growth.
The project is intended to reduce reliance on thermal power, which costs $0.269 (KSh34.95) per unit compared with $0.025 (KSh3.26) for locally produced hydropower, and to lower the fuel surcharge that drives steep consumer bills.
Disclosures show the plant will be set up in stages with 300,000 kW this year, a similar amount by 2028 and 600,000 kW in 2032.
Kenya Power currently taps electricity from seven thermal plants, with two coastal plants accounting for a combined 77 per cent of the 1.04 billion kilowatt-hours of thermal power bought in the year ended June 2025.
A successful deployment would see Kenya join other African economies such as Mozambique, Algeria, Egypt and Tunisia that heavily rely on natural gas for power generation.
