The Kenya Electricity Transmission Company (KETRACO) has signed a Public-Private Partnership agreement worth US $311 million (KSh 40.4 billion) with Africa50 and Power Grid Corporation of India to develop, finance, build, and operate critical transmission lines in Kenya.
The project, which is a first of its kind in Africa, will deliver the 400kV Lessos–Loosuk and 220kV Kisumu–Musaga lines, which are key priorities under Kenya’s Transmission Masterplan. It will be fully financed and implemented by the private sector from the design, construction, and operation to the maintenance.
In a statement, KETRACO emphasised the vital role the two transmission lines will play in ensuring a reliable power supply to the western region of the country.
“The 400kV Lessos–Loosuk and 220kV Kibos–Kakamega–Musaga Transmission Lines and associated substations will enhance grid reliability, integrate renewable energy sources, and strengthen power supply across Western and Northern Kenya,” the statement read in part.
Improving energy provision
Reading remarks on behalf of the Cabinet Secretary for the National Treasury, John Mbadi, during the signing ceremony, Principal Secretary Chris Kiptoo underscored Kenya’s determination to accelerate economic development through strategic investments in energy infrastructure.
“The global energy landscape is evolving rapidly as nations expand renewable energy, enhance reliability, and pursue cleaner, more efficient power systems…Through PPPs, the government attracts capital and technical expertise while safeguarding fiscal discipline and national priorities,” he stated.
The government also explained that project-affected persons will receive prompt and fair compensation for land, crops, structures, and income loss, with livelihood restoration measures to maintain community stability.
A much-needed partnership
On its part, Africa 50 stated that the project will not only expand capacity but also create employment and foster economic growth in the country.
“Beyond expanding capacity, the project will create jobs, build specialist local skills, support renewable energy integration and drive economic growth.”
The project has been termed a landmark development for the continent, considering the rising need for electricity for various sectors of the Kenyan economy and the region, including households, businesses, and institutions.
“This pioneering PPP model for transmission marks a first-of-its-kind in Africa and represents Africa50’s initial step in a broader investment drive to align public and private capital to transform power transmission across the continent,” the Africa50 statement stated.
Africa50 is a pan-African infrastructure investor and asset manager established to help bridge Africa’s infrastructure funding gap by facilitating project development, mobilising public and private sector finance, and investing in infrastructure on the African continent.
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