In this study, a cogeneration plant is proposed for generation of extra electricity using a steam turbine running on steam produced from heat recovered from exhaust heat. An engine convers just 30 to 40% of energy in fuel to useful power with the rest being lost in the cooling and exhaust systems. This study demonstrates the potential of Kipevu I diesel power plant to recover waste heat and utilize the same for electric generation. This will help to boost plant capacity making it a more reliable source of standby power. This is achieved through performance analysis of the plant to determine its availability and reliability as well as designing, sizing, and selecting the suitable interfaces for cogeneration system suitable for the plant. The key interfaces shall include the heat exchanger, the boiler (with feed pump, economizer, super heater, and preheater), the steam turbine and the turbogenerator. In the proposed development an exhaust gas boiler is used to generate steam using exhaust heat, the wet steam is superheated in a superheater heater at a mass flowrate f 2.8 kg/s and then used to run a steam turbine for extra power generation from a generator that is coupled to the steam turbine.