China Machinery Engineering Corporation has entered into a contract with Kipeto Energy Limited for construction of a 102 megawatts wind power plant in Kajiado county and a 220kV transmission line.
The move raises hopes for cheaper power as wind is considered one of the sources of affordable and renewable electricity.
The Chinese firm will design, supply, carry out civil engineering and construction, commission and provide technical services for the project, on a turnkey basis which gives it freedom to procure materials on its own without involving the local company.
The contract value is Sh22.5 billion. The project will be implemented in a period of 22 months from commencement of construction.
"As stipulated in the contract, the project will commence for construction upon the satisfaction of certain conditions precedent," said Sun Bai, China Machinery Engineering Corporation's chairman.
Only about 25 megawatts of wind energy, produced at the Ngong Hills-based wind farm operated by Kenya Electricity Generating Company (KenGen) is currently available in the grid.
Construction of a 300 megawatts wind farm in Marsabit is currently underway. The project is hoped to provide relief from high electricity bills by displacing some thermal power generated using expensive diesel and heavy fuel oil from the country's energy mix.