- Kenya Power accounts for about 16% of Ormat’s annual revenue.
- Utility paid Ksh 2.72 billion earlier in 2026 but arrears persist.
- Olkaria III remains a cornerstone asset in Kenya’s geothermal sector.
Ormat Technologies, a United States based geothermal developer headquartered in Reno, continues to report delayed payments from Kenya Power, highlighting ongoing financial strain within Kenya’s power sector.
The company has maintained a long term presence in Kenya, anchored by the development and expansion of the Olkaria III Geothermal Complex. This asset forms a central part of the country’s renewable energy infrastructure and underscores Ormat’s role as a key private sector participant in geothermal generation.
Despite a payment of Ksh 2.72 billion made earlier in 2026 to settle outstanding geothermal power bills, Ormat reports continued inconsistencies in payments from the national utility. The company has previously disclosed similar delays in regulatory filings, with overdue balances at one point reaching about US$48.9 million.
Kenya Power remains a significant off taker for Ormat, contributing roughly 16% of the company’s total annual revenues. The persistent delays therefore pose a material risk to cash flow stability, particularly in a capital intensive segment such as geothermal energy.
Ormat’s operations in Kenya are primarily executed through subsidiaries, including OrPower, with assets concentrated in the Naivasha and Nakuru regions. The company’s portfolio comprises five geothermal plants that collectively contribute a substantial share of baseload power to the national grid.
Author: Bryan Groenendaal
