- Private sector financed project valued at KES 40.4 billion strengthens grid reliability and protects public funds.
- New transmission lines will integrate geothermal power and expand high voltage access in Western and Northern Kenya.
- Deal sets a precedent for scaling private investment into Africa’s power infrastructure.
Kenya Electricity Transmission Company Limited has signed a major Public Private Partnership agreement for the delivery of two strategic high voltage transmission lines that will significantly strengthen the country’s power transmission network.
The project covers the design, construction, financing, operation and maintenance of the 400 kV Lessos to Loosuk transmission line and the 220 kV Kibos to Kakamega to Musaga transmission line, together with associated substations. Once completed, the infrastructure will improve grid stability, support renewable energy integration and enhance electricity supply across Western and Northern Kenya.
The agreement brings together KETRACO and a private sector consortium comprising Africa50 Group and Power Grid Corporation of India Limited. Valued at KES 40.4 billion, equivalent to USD 311 million, the project represents one of the most significant private investments in Kenya’s transmission sector to date.
Under the PPP structure, the project will be fully financed and implemented by the private partner, reducing pressure on public finances while accelerating delivery of critical energy infrastructure. Government payments will only commence after independent certification, under a 30 year availability based concession.
Speaking at the signing, Cabinet Secretary for the National Treasury John Mbadi said the structure demonstrates strong fiscal discipline, noting that cost recovery will only occur after independent verification of performance across design, construction, financing, operation and maintenance.
The 400 kV Lessos to Loosuk line will enable evacuation of up to 300 MW of geothermal power from the Baringo Silali fields, supporting Kenya’s clean energy transition. The 220 kV Kibos to Kakamega to Musaga line will extend high voltage connectivity to Western Kenya for the first time, reducing voltage instability, lowering technical losses and cutting reliance on costly thermal generation.
Cabinet Secretary for Energy Opiyo Wandayi said the partnership reflects growing investor confidence in Kenya’s energy sector and will accelerate access to reliable and affordable electricity while strengthening long term energy security.
The project aligns with Kenya’s Least Cost Power Development Plan and KETRACO’s Transmission Master Plan, supporting industrial growth, job creation and regional power integration. Developed as a Privately Initiated Proposal under the PPP Act of 2021, it has received all regulatory, legal and financial approvals, with construction expected to begin within the next 12 months.
The transaction is expected to serve as a model for future power sector PPPs in Africa, highlighting the role of well structured private participation in delivering sustainable energy infrastructure at scale.
Author: Bryan Groenendaal
