Unlocking Reliable and Affordable Power Through a Regional Electricity Market
By Daniel Kiptop Bogoria
An interesting development is unfolding in the Eastern Africa region. For a long time, countries in the region have developed intra-regional trade relationships that extend to agricultural products, livestock and animal products, manufactured goods, mining and natural resources, as well as energy and petroleum products, among others.
In the energy and petroleum sector, the region has witnessed cross-border trade in refined petroleum products, the transit of goods through the ports of Mombasa and Dar es Salaam, regional collaboration on energy security and standards, and shared infrastructure for electricity transmission and distribution.
This year, trade relations in the energy sector are expected to advance a notch further with the launch of an electricity market by the Eastern Africa Power Pool (EAPP). This is a commendable milestone for the region, as it will allow countries to trade power seamlessly through an interconnected grid. For participating countries, this translates into improved electricity reliability for citizens, lower costs, and strengthened regional energy security. The power pool will link national electricity systems and enable EAPP member states with surplus generation capacity to export electricity to neighbours facing supply shortfalls or higher production costs.
As a result, the electricity market will enhance energy security, improve grid stability, and encourage the efficient use of the region’s diverse energy resources. A functional power market also supports long-term planning, as governments can invest more strategically in generation and transmission infrastructure, knowing they are part of a larger, integrated system.
The EAPP, established in 2005, has made notable progress in supporting the operationalisation of the power market. Key achievements include the development of cross-border transmission infrastructure, which has enabled electricity exchanges among member countries. For instance, Kenya imports 200 MW of electricity from Ethiopia and has energy exchange agreements with Uganda and Tanzania. In 2025, Tanzania also began importing power from Ethiopia through the Ethiopia–Kenya–Tanzania interconnector, marking a significant milestone in Eastern Africa’s power trade.
Another major milestone by the EAPP is the establishment of the Independent Regulatory Board (IRB), which has spearheaded the harmonisation of the regional regulatory framework. This framework is essential to the success of the electricity market, as it creates a predictable, efficient, and fair operating environment for all participating countries. It reduces administrative barriers by promoting uniform standards on key issues such as grid codes, market operations, tariffs, safety, and dispute resolution.
A regional power market is therefore a logical next step for Eastern Africa’s energy transition. By pooling diverse national strengths in hydropower, geothermal, wind, and solar energy, countries can lower costs, improve reliability, and reduce system-wide risks that no single market can manage alone. Harmonised regulation, anchored in proven national frameworks, provides the foundation for trust, investment, and efficient power flows across borders.
In this context, regional electricity integration becomes a powerful development tool transforming national assets into shared resilience, accelerating energy access, and delivering affordable and reliable power to support the region’s long-term growth.
The writer is the Director General of the Energy and Petroleum Regulatory Authority and the Chairman of the Independent Regulatory Board of the Eastern Africa Power Pool (EAPP).
