Kenya has entered into a $311 million (KES 40 billion) Public-Private Partnership (PPP) with Africa50 and Power Grid Corporation of India to expand its electricity transmission network.
The deal, announced by the Ministry of Finance and Kenya Electricity Transmission Company (KETRACO), comes as the country recorded a historic peak demand of 2,439 MW in December 2025, underscoring the urgent need for grid stability to support industrial growth.
Strategic Partners Driving the Project
The agreement brings together:
- KETRACO – contracting authority
- Africa50 – pan‑African infrastructure investment platform
- PowerGrid Corporation of India – technical and operational partner
The consortium will design, finance, build, and operate new high-voltage transmission lines and substations in Western Kenya over a 30-month construction period, under a 30-year concession model.
Expanding Transmission Capacity in Western Kenya
The PPP will deliver two major projects:
- 400kV Lessos–Loosuk Line: Serving Samburu, Baringo, Nandi, and Elgeyo‑Marakwet counties, with substations at Lessos and Loosuk. It will evacuate up to 300 MW of geothermal power from Baringo–Silali, a priority under Kenya’s Transmission Masterplan.
- 220kV Kibos–Kakamega–Musaga Line: Strengthening supply across Western Kenya towns and homes, enhancing energy security and reliability.
Economic and Social Impact
Treasury CS, in remarks delivered by PS Dr. Chris Kiptoo, emphasised:
“Reliable electricity strengthens national development, enhances learning environments, supports uninterrupted health services, improves business productivity and expands agricultural output.”
Financing Under Fiscal Constraints
With high public debt and limited fiscal space, Kenya is increasingly turning to PPPs and securitisation to fund infrastructure without adding immediate pressure to public finances. Africa50 described the initiative as
“A first‑of‑its‑kind PPP model for transmission in Africa, aligning public and private capital to transform power transmission across the continent.”
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Policy and Market Context
- The deal reflects President William Ruto’s push for private sector participation in infrastructure.
- Critics warn of hidden liabilities due to limited transparency, but officials argue that PPPs are essential under current financial conditions.
- The agreement follows the cancellation of a previous transmission project involving India’s Adani Group in 2024.
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