Kenya signed a $311 million public-private partnership agreement Monday to build two high-voltage electricity transmission lines, aiming to strengthen its grid and reduce frequent blackouts amid soaring demand.
The deal, announced by the Finance Ministry, pairs the state-owned Kenya Electricity Transmission Company with Africa50, a pan-African infrastructure investment platform, and India’s Power Grid Corporation, one of the world’s largest transmission utilities.
Under the 30-year concession, the private consortium will fully finance, design, build, operate and maintain the lines and associated substations. No public funds will be used, and the assets will revert to the government at the end of the term.
Project details
The initiative includes two key corridors totaling about 252 kilometers.
One is a 180-kilometer, 400-kilovolt line from Lessos to Loosuk, running through Nandi, Elgeyo Marakwet, Baringo and Samburu counties. It will provide an alternative route to evacuate up to 300 megawatts of wind power from the Lake Turkana plant and support geothermal development in the North Rift.
The second is a 72-kilometer, 220-kilovolt line from Kibos to Kakamega and Musaga, serving Kisumu, Vihiga and Kakamega counties. This will extend high-voltage supply to western Kenya for the first time, stabilizing voltage, cutting technical losses and spurring industrial growth.
Officials say the upgrades will enhance grid stability, minimize load shedding and better integrate renewables, addressing overloads that have triggered nationwide outages in recent years.
Fiscal pressures drive PPP model
Kenya has increasingly turned to public-private partnerships to fund infrastructure as public debt exceeds 70% of GDP and resistance grows to new taxes.
Energy Cabinet Secretary Opiyo Wandayi called the agreement a “landmark achievement,” saying it accelerates reliable electricity access and supports industrialization.
Treasury Cabinet Secretary John Mbadi emphasized fiscal prudence, noting the private sector covers the full cost.
Africa50 CEO Alain Ebobissé described it as an “Africa-first” independent transmission model replicable across the continent. Power Grid Chairman R.K. Tyagi pledged to share expertise for Africa’s energy transition.
Contrast with prior deal
The pact follows the government’s cancellation last year of a proposed transmission project with India’s Adani Group after its founder faced U.S. bribery charges. President William Ruto cited integrity concerns in scrapping that and related deals amid public protests over transparency.
Analysts view the new partnership — led by African-backed funding and a state-owned Indian firm — as less controversial, helping Kenya meet annual grid expansion needs estimated at $250 million over the next two decades.
With electricity demand hitting record peaks, including over 2,400 megawatts this month, the project is seen as vital for reliable supply and green energy goals.
