President Kibaki yesterday said a robust economic growth coupled with a fast rising population have accelerated demand for electricity posing a challenge.
He however said the government is determined to ensure that 90mper cent of Kenya's population is connected to power supply from the national grid by 2030.
Speaking in Mombasa when he commissioned the Kipevu III thermal power plant the president said the electricity generation capacity under the Vision 2030 blue print is intended to grow to 21,000 megawatts in the next 17 years. He said this will provide for the project peak demand of 17,000 megawatts and a reserve margin of 23 per cent.
He said the Sh10 billion Kipevu plant was put up through local infrastructure bond sale undertaken by Kengen in 2009 and will produce 115 megawatts.
"Our total installed electricity capacity at 1,500 megawatts is against a peak demand of 1,300 megawatts living little room for generation capacity break down," said Kibaki.
He said only 30 per cent of the Kenyans are connected to electricity a situation he said, the government is determined to change.
The president said the country is putting efforts in the development of green sources of energy which are cheaper to produce hence affordable.
Energy minister Kiraitu Murungi said Kenya is positioning itself to become a power house. He said the government is watching with interest the discovery of oil, gas and other resources to ensure they drive this country to greater development.