Ethiopia and Kenya have officially signed a new cross-border power supply agreement establishing a baseline tariff of 24.07 Birr per kilowatt-hour (kWh) for electrical energy transmission. The milestone commercial deal aims to significantly bolster bilateral electricity trade, expand reliable energy access to underserved border areas, and accelerate the long-term strategic integration of the wider East African regional power network.
Under the formalized framework, the precise financial and operational terms specify that the Kenya Power and Lighting Company (KPLC) will pay the 24.07 Birr rate for energy consumed. Additionally, the Kenyan utility will incur a structured demand charge of 1,010.89 Birr, establishing a highly transparent and predictable commercial purchasing partnership between the two prominent state-backed utilities.
The agreement was jointly executed by the Chief Executive Officer of the Ethiopian Electric Utility (EEU), Engineer Getu Geremew, and his Kenyan counterpart, Dr. Eng. Joseph Siror. Following the high-level signing ceremony, Engineer Getu highlighted that this initiative actively transforms the shared regional vision of a deeply connected East Africa into a reality, noting that sustainable energy acts as a vital bridge to mutual economic growth.
Representing the Kenyan delegation, KPLC Managing Director and CEO Dr. Eng. Joseph Siror echoed these collaborative sentiments, explaining that the strategic benefits extend far beyond simple grid connectivity. He emphasized that the newly signed framework will play a critical role in reinforcing regional security, solidifying diplomatic peace, and expanding bilateral macroeconomic cooperation between the neighboring East African nations.
This bilateral commercial arrangement marks a substantial advancement for the East African Power Pool, which seeks to optimize diverse energy resources across the continent. By establishing clear pricing mechanisms and shared infrastructure protocols, the historic agreement effectively lays the groundwork for enhanced industrial productivity, sustainable regional development, and stronger economic resilience for both populations.