Kenya: KETRACO Signs Sh40.4bn Deal With Consortium To Expand And Modernise Power Transmission Network

The Kenya Electricity Transmission Company Limited (KETRACO) on Monday signed a Sh40.4 billion (US$311 million) Public-Private Partnership (PPP) agreement with a consortium comprising Africa50 and Power Grid Corporation of India to expand and modernise Kenya’s power transmission network, local media outlets have reported.

The project will be fully financed, implemented, operated, and maintained by the private sector, with no public funds committed. It covers the design, construction, financing, operation, and maintenance of two high-voltage transmission lines and associated substations aimed at improving grid reliability, integrating renewable energy, and strengthening power supply across Western and Northern Kenya.

The consortium brings together Africa50, a pan-African infrastructure investment platform backed by 33 African governments, the African Development Bank Group, and other institutions, and Power Grid Corporation of India, one of the world’s largest transmission utilities, responsible for transmitting about 50 per cent of India’s electricity.

The project was initiated as a Privately Initiated Proposal (PIP) and approved under Section 61 of the PPP Act, 2021.

The PPP covers two major transmission lines. The 400kV Lessos–Loosuk line will pass through Nandi, Elgeyo Marakwet, Baringo, and Samburu counties, providing an alternative evacuation route for up to 300MW of geothermal power from the Baringo–Silali fields.

The 220kV Kibos–Kakamega–Musaga line will serve Kisumu, Vihiga, and Kakamega counties, extending the high-voltage grid into Western Kenya for the first time and reducing voltage instability and technical losses.

“This partnership demonstrates the strength of Kenya’s investment environment and the confidence of global partners in our energy agenda. We are accelerating access to reliable and affordable electricity while laying the foundation for industrialisation, job creation, and inclusive economic growth,” Energy Cabinet Secretary Opiyo Wandayi said during the signing ceremony.

National Treasury Cabinet Secretary John Mbadi said the project reflects strong fiscal discipline, noting that the full cost will be borne by the private partner. He added that cost recovery will be through an availability-based tariff payable only after independent certification of completed works, with the concession period capped at 30 years.

Under the agreement, Africa50 and Power Grid will establish a project company to manage the infrastructure over the concession period. KETRACO will make performance-based availability payments, while an independent expert jointly appointed by both parties will oversee project delivery.

At the end of the concession period, all assets will revert to KETRACO in good condition and free of encumbrances.

KETRACO Acting Managing Director, Eng. Kipkemoi Kibias, said the company plans to develop an additional 8,000 kilometres of transmission lines over the next 20 years, requiring about US$5 billion in investment.

However, limited public funding has necessitated increased private sector participation. “This PPP reflects our commitment to innovative financing solutions to bridge the transmission financing gap and deliver critical infrastructure,” he said.

The project aligns with Kenya’s Least Cost Power Development Plan and KETRACO’s Transmission Master Plan, and will support the integration of geothermal and wind power, including from the Baringo–Silali fields and the Lake Turkana Wind Power Project, helping to reduce reliance on costly thermal generation.

Africa50 Chief Executive Officer, Alain Ebobisse, said the deal represents an Africa-first Independent Power Transmission model that can be replicated across the continent, while Power Grid Corporation of India Chairman and Managing Director, Dr. R.K. Tyagi, said the partnership combines global technical expertise with innovative project structuring to unlock Africa’s energy potential.