Kenya has taken a new approach to expanding its power grid, with the Kenya Electricity Transmission Company Limited, KETRACO, signing a $311 million public-private partnership with Africa50 and Power Grid Corporation of India to deliver a major transmission project without relying on public funds.
The deal hands the financing, construction and long-term operation of two high-voltage transmission lines to a private consortium, with KETRACO paying only when the assets are delivered and performing.
The project, one of the biggest changes yet in how Kenya plans to fund and manage its grid expansion, will be done by a consortium led by Africa50 and India’s Power Grid Corporation, a utility that carries about half of India’s electricity.
A special project company will be set up to design, build, finance, operate and maintain the lines over a 30-year concession. After that, the assets return to KETRACO in good condition.
At the centre of the agreement are two transmission corridors meant to fix long-standing weaknesses in the grid. One is a 400kV double-circuit line stretching roughly 180 kilometres between Lessos and Loosuk, with new substations along the route.
It cuts across parts of Nandi, Elgeyo Marakwet, Baringo and Samburu counties and is designed to carry wind power from Lake Turkana and future geothermal output from the North Rift.
The second is a 220kV double-circuit line running about 72 kilometres from Kibos through Kakamega to Musaga. It brings high-voltage infrastructure into Western Kenya for the first time and supports lower-voltage networks in Kisumu, Vihiga and Kakamega.
The goal is to ensure fewer outages, lower losses and enough capacity to support factories and businesses that have had challenges with unstable power.
Together, the two lines are expected to make renewable power cheaper and more reliable for millions of people, while backing economic growth in regions that have often sat at the edge of the national grid.
Energy Cabinet Secretary Opiyo Wandayi described the agreement as proof that Kenya can attract serious global capital into its energy sector.
He said, “This partnership between KETRACO and Africa50-PowerGrid consortium demonstrates the strength of Kenya’s investment environment and the confidence of global partners in our energy agenda. We are not only accelerating access to reliable and affordable electricity, but also laying the foundation for industrialisation, job creation, and inclusive economic growth. This is how we turn policy into progress.”
The financing model was also a key point at the signing. National Treasury Cabinet Secretary John Mbadi stressed that the full $311 million cost would be carried by the private partner. “The project’s financing structure reflects prudent fiscal management,” he said.
“The $311 million (KES 40.4 billion) cost will be fully financed by the private partner, safeguarding public resources and allowing the Government to continue investing in priority sectors such as health, education, and agriculture.”
Under the contract, KETRACO will make availability payments only after independent experts confirm that work has been completed to standard. Performance guarantees and full insurance cover are built into the deal, and local content rules require strong participation by Kenyan professionals, contractors and suppliers.
KETRACO’s Acting Managing Director Eng. Kipkemoi Kibias said the company plans to add about 8,000 kilometres of transmission lines over the next two decades, a programme that needs around $5 billion. Traditional funding sources, he noted, cover only a small share of that requirement.
“The signing of this Public-Private Partnership agreement with Africa50 and Power Grid Corporation of India reflects our strong commitment to innovative financing solutions in infrastructure delivery,” Kibias said.
Africa50’s Chief Executive, Alain Ebobissé, described the project as a model for the continent. He said, “We are proud that Africa50 has led another Africa-first innovation with this Independent Power Transmission (IPT) project.
“We commend H.E. President William Ruto and the Government of Kenya (GoK), for the bold initiative that will be the blueprint to further increase private sector investment into the expansion and stabilisation of Africa’s power transmission networks, which are critical to bridging the continent’s electricity access gap.”
Power Grid Corporation of India also showed that Kenya’s project could be replicated elsewhere. Chairman and Managing Director, Dr R.K. Tyagi, said, “By combining our technical expertise and global excellence in the transmission sector with Africa50’s project development and structuring capabilities, POWERGRID is committed to supporting Kenya, sharing a scalable model with other African countries, and working with Africa50, KETRACO, and other trailblazers to realise Africa’s energy potential.”
Beyond the figures and contracts, the agreement aligns with Kenya’s long-term power plans, including the Least Cost Power Development Plan and KETRACO’s Transmission Master Plan. If delivered as promised, it reduces reliance on expensive thermal generation and tightens the link between renewable energy projects and the national grid.
