Kenya has taken a significant step in its energy transition after signing its first-ever power transmission Public-Private Partnership (PPP), a move expected to accelerate the expansion and stabilisation of the national electricity grid.
The 40.4 billion shilling project brings together the Kenya Electricity Transmission Company (KETRACO), infrastructure investment platform Africa50, and India’s Power Grid Corporation. National Treasury Principal Secretary Dr. Chris Kiptoo said the project will be fully financed by private investors, easing pressure on public funds while fast-tracking the delivery of reliable power to meet the country’s growing electricity demand.
Discussions on opening up the power transmission sector to private capital have gained momentum in recent years as the government grappled with constrained public finances, rising demand for electricity and the urgent need to strengthen the national grid. These talks have now culminated in the landmark agreement, marking Kenya’s first PPP in power transmission infrastructure.
The project will involve the construction of two major high-voltage transmission lines. These include a 130-kilometre 400kV Lessos–Loosuk line, which will transmit power generated in Lake Turkana and other parts of Northern Kenya to the national grid, and a 72-kilometre 220kV Kibos–Kakamega–Musaga double-circuit line aimed at enhancing grid reliability and increasing electricity capacity in western Kenya.
Counties set to benefit from the new infrastructure include Kisumu, Vihiga and Kakamega, among others. Once completed, the transmission lines are expected to improve power stability, reduce technical losses and support the integration of renewable energy into the grid.
The government says the project underscores its commitment to leveraging private capital to deliver critical infrastructure, while supporting Kenya’s transition to clean and reliable energy.
