The power station is located between Bugoye and Kitoko, straddling the Mubuku River in Kasese District in Western Uganda.

The station is in the foothills of the Rwenzori Mountains, close to the border with the Democratic Republic of the Congo.

Kitoko lies approximately 20 kilometres (12 mi), by road, north of Kasese, the location of the district headquarters and the nearest large city.

[1] Kilembe Mines Limited built the state in the 1950s to power the extraction of copper ore from the Rwenzori Mountains.

In September 2013, Ugandan print media indicated that the Tibet-Hima Consortium, the Chinese company that won the concession to run Kilembe Mines for the next twenty five years, has plans to increase capacity of the power plant to 12 megawatts.