Written By : Faith Jemosop

Tanzania is preparing to finalize an agreement to import electricity via Kenya’s grid, primarily from Ethiopia, through the newly completed Isinya–Singida interconnector. The deal addresses persistent power shortages in Tanzania’s Northern Zone, reduces transmission losses, and leverages cheaper Ethiopian hydroelectricity.

The interconnector, energized in December 2024, has enabled a successful trial of 50 MW flow from Ethiopia through Kenya to Tanzania, paving the way for a long‑term wheeling arrangement within the Eastern Africa Power Pool (EAPP).

Latest Developments & Deal Confirmation

Kenya and Tanzania have started cross‑border electricity trade. The Isinya–Singida 400 kV interconnector went live on December 11, 2024, enabling bilateral energy exchange. Subsequently, a successful trial was conducted on June 30, 2025, where 50 MW of power from Ethiopia was wheeled through Kenya into Tanzania’s grid, increasing load in Kenya from 225 MW to 262 MW.

Tanzanian officials confirmed that finalization of a formal power‑import agreement with Kenya is imminent, allowing regular imports as needed and laying the groundwork for possible future exports when surplus generation is available.

Why Tanzania Is Importing Power

Northern Tanzania, including regions like Arusha, has suffered frequent blackouts. Losses from internally transmitting power from central/northern plants exceed KSh 32 billion annually. Despite abundant national generation , including the 2,115 MW Julius Nyerere Hydropower Plant plus roughly 1,694 MW installed capacity elsewhere , transmission inefficiencies leave parts of the country under‑served.

Importing electricity from Ethiopia via Kenya offers lower costs, reduced grid losses, and faster stabilization of supply to critical northern markets.

The Isinya–Singida Interconnector

The 507–510 km 400 kV line connects Kenya’s Isinya substation to Tanzania’s Singida, passing through Namanga and Arusha. Kenya built about 96–93 km, Tanzania about 414 km. Total investment cost was approximately US $309 million, co‑financed by Kenya, the Tanzanian state, and the African Development Bank.

The project is part of the Eastern Electricity Highway, aiming to integrate power systems across EAPP countries.

Regional Context Eastern & Southern Power Pool Integration

The interconnector underpins the broader Eastern Africa Power Pool (EAPP) efforts. Formal regional power trading is scheduled to begin in March 2025. Tanzania is also constructing a 400 kV line to Zambia, due for completion in November 2025, linking EAPP to the Southern Africa Power Pool (SAPP).
Also read: African Development Bank Approves €173.84M to Advance Rwanda’s Universal Energy Access

The Ethiopia–Kenya high-voltage DC corridor,  Sodo–Moyale–Suswa line,  enables transfer of up to 2,000 MW and was completed in November 2022, facilitating more efficient regional flows.

Economic & Strategic Benefits for Tanzania

By importing power from Ethiopia, Tanzania reduces the cost of electricity, especially compared to expensive gas or long internal transmission routes. The deal enhances energy reliability in key zones, mitigating business losses and raising investor confidence in regions like Arusha and northern tourism areas.

Tanzania positions itself as an energy hub: when domestic generation surpasses national demand, the same interconnector can transmit surplus power to neighbouring markets.

 Challenges & Risks Ahead

• Grid stability: Kenya experienced a blackout in late 2024 arising from instability in the cross‑border corridor, highlighting technical complexities in managing shared transmission infrastructure.
• Regulatory harmonization: Effective wheeling requires harmonized tariffs, transit agreements, and oversight between Kenya, Tanzania, and Ethiopia.
• Financial sustainability: Long‑term pricing agreements must be fair and flexible to shifts in generation capacity and demand.
  

Tanzania and Kenya are expected to sign a formal power‑import agreement in the coming months to operationalize ongoing wheeling arrangements. The Ethiopia–Kenya PPA, currently at 100 MW, aims to scale to 200 MW within three years, with part of that entering Tanzania via Kenya.

Upon completion of the Tanzania–Zambia interconnector in November 2025, Tanzania will expand into exporting power to Southern Africa. EAPP’s March 2025 launch of formal trade markets will regulate commercialization across member states, enhancing transparency and regional energy flows.

Also read: Understanding Kenya Power’s Tariff Categories and How They Affect Your Token Amount 

This deal exemplifies regional energy cooperation: linking three countries’ grids ensures greater system resilience, economies of scale, and reduced greenhouse emissions. It supports the African Union’s Single African Electricity Market ambition by demonstrating functioning cross-border electricity trade in East Africa.

Tanzania’s evolving role, from importer to possible exporter, reflects a shift toward energy self-sufficiency and regional electricity leadership.