Kenya has secured a significant Ksh8.3 billion loan to redevelop the ageing Gogo Hydro Power Plant in Migori County in a renewed push to strengthen energy security and reduce reliance on expensive thermal generation.

The financing agreement was signed with a consortium of international lenders and will go towards upgrading the plant’s installed capacity, modernising its systems and extending its distribution infrastructure to serve more households and businesses across the western region.

Energy ministry officials say the investment will enable Kenya Electricity Generating Company to expand Gogo’s output from a modest forty megawatts to nearly eighty megawatts once rehabilitation is completed.

They argue this will translate to more stable supply and reduced outages in Migori, Homa Bay, Kisii and neighbouring counties which currently depend heavily on power imports from Kisumu and Kenya’s main grid.

The government further believes the upgrade will support value chain projects in agriculture and mining which have been hampered by poor electricity access in the region.

Officials insist the project aligns with Kenya’s plan to transition to fully renewable energy by the end of the decade.

Treasury explained the long term concessional loan carries affordable interest terms, insisting the project will pay for itself through increased generation over the next twenty years.

The enhanced Gogo plant is projected to create hundreds of local jobs during construction and operation while boosting trade and industrial activity in the area.

However some energy watchdogs have raised concerns over rising public debt levels warning the government must ensure transparency and timely completion of works to avoid project overruns that could inflate costs.

They argue previous upgrades have faced delays. The new development signals Nairobi’s determination to strengthen energy self sufficiency in underserved regions as part of its wider push for equitable national growth.