Kenya will sell 30 megawatts (MW) of electricity to Rwanda in 2015 to cater for the smaller nation's growing demand for power, Kenya Power said in a statement.
Rwanda has a power output capacity of 160 MW that is level with the demand, piling pressure for alternative sources. The power will be transmitted through a new high voltage line linking the two nations via Uganda.
The three nations, with a combined population of more than 94 million and all members of the five-nation East African Community (EAC) bloc, are battling to keep up with demand for power as their economies grow.
Businesses in the region often complain of unreliable and costly supplies.
The three countries in September invited bids for a joint consultant to oversee a feasibility study to connect them by a high voltage power line, part of efforts to deepen their economic integration. The project aims to build a 400 kilovolt (kV) electricity line running from Olkaria, where Kenya is expanding geothermal power production, via Uganda to Birembo in Rwanda.
Uganda and Kenya are already connected by older lines. The latest project will add new sections.