The African Development Bank (AfDB) has approved a $16.5 million loan to support the development of the 35 MW OrPower Twenty-Two (OTTL) Geothermal Power Plant.
Approved in late 2025 and officially announced in January 2026, the project is a cornerstone of Kenya’s strategy to transition to a 100% clean energy grid.
The OTTL plant is the third facility in the Menengai geothermal field, located north of Nakuru. Once completed, it will join the operational Sosian Menengai plant and the Globeleq Menengai project to unlock the field’s full 105 MW capacity for its first phase. This expansion is made possible by a successful Public-Private Partnership (PPP) model where the state-owned Geothermal Development Company (GDC) manages the steam production, while private independent power producers (IPPs) like OTTL handle the electricity generation.
“The Menengai model demonstrates the power of public-private collaboration, where government-led resource development unlocks private investment,” said Wale Shonibare, AfDB Director of Energy Financial Solutions. “GDC secures stable revenues from steam sales, allowing it to reinvest in nationwide geothermal development, while the private sector drives efficient power generation.”
The plant is designed to provide approximately 301 Gigawatt hours (GWh) of clean energy annually to the national grid. Unlike weather-dependent solar or wind energy, geothermal power offers a constant “baseload” supply, which is essential for industrial stability and lowering overall electricity costs for Kenyan consumers.
The project is also a significant win for the environment, with an expected avoidance of 1.9 million tonnes of greenhouse gas emissions over its 25-year operational life. Qi Jingwen, Director of OTTL, emphasized the company’s commitment to this green transition:
“We are honoured to be constructing the Orpower Menengai Geothermal Power Plant using proprietary next-generation technology, thereby fulfilling our corporate mission of ‘contributing to saving the planet.’ Support by international financial institutions will enable deeper participation in the development of new green energy in Africa.”
The financing aligns with Kenya’s Mission 300 Energy Compact, which aims to double the nation’s geothermal capacity from 940 MW to 1,824 MW by 2030. The AfDB loan complements additional funding from the International Finance Corporation (IFC), bringing the total debt for the project to $64.4 million out of an estimated $91.9 million total cost.
