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The Kenya Electricity Transmission Company Limited (KETRACO) has entered into a Sh40.4 billion ($311 million) Public-Private Partnership (PPP) agreement with a consortium made up of Africa50 and India’s Power Grid Corporation, in a significant move to expand and modernise the country’s electricity transmission system.
Under the arrangement, the project will be entirely financed, built, operated and maintained by the private sector, with no allocation of public funds.
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The initiative involves the design, construction, financing, operation and maintenance of two high-voltage transmission lines and related substations. The upgrades are expected to enhance grid stability, support renewable energy integration and strengthen electricity supply in Western and Northern Kenya.
The consortium brings together Africa50—a pan-African infrastructure investment platform supported by 33 African governments, the African Development Bank Group and other partners—and Power Grid Corporation of India, one of the world’s largest power transmission companies, which handles about half of India’s electricity transmission.
The project originated as a Privately Initiated Proposal (PIP) and was approved in line with Section 61 of the PPP Act, 2021. It received clearance from the PPP Committee, KETRACO’s Board, the Energy and Petroleum Regulatory Authority (EPRA) and the Office of the Attorney General, leading to the signing of the agreements on December 15, 2025.
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It covers two key transmission corridors. The 400kV Lessos–Loosuk line will run through Nandi, Elgeyo Marakwet, Baringo and Samburu counties, creating an alternative evacuation route for up to 300MW of geothermal power from the Baringo–Silali fields. The 220kV Kibos–Kakamega–Musaga line will serve Kisumu, Vihiga and Kakamega counties, extending high-voltage transmission into Western Kenya for the first time and reducing voltage fluctuations and technical losses.
Energy Cabinet Secretary Opiyo Wandayi said the partnership underscores Kenya’s strong investment climate and growing confidence among international partners in the country’s energy strategy. He noted that the project will help fast-track access to reliable and affordable electricity while supporting industrial growth, employment and inclusive development.
National Treasury Cabinet Secretary John Mbadi highlighted that the project demonstrates fiscal prudence, as the full investment cost will be met by the private partner. He added that repayments will be made through an availability-based tariff only after independent verification of completed works, with the concession period limited to a maximum of 30 years.
As part of the agreement, Africa50 and Power Grid will set up a special project company to manage the assets throughout the concession period. KETRACO will make performance-linked availability payments, while an independently appointed expert will monitor implementation. Once the concession ends, the assets will be handed back to KETRACO in good condition and without liabilities.
KETRACO Acting Managing Director Eng. Kipkemoi Kibias said the company plans to roll out an additional 8,000 kilometres of transmission lines over the next two decades, requiring an estimated $5 billion. However, constrained public financing has made private sector involvement increasingly necessary.
He said the PPP model reflects KETRACO’s commitment to innovative financing approaches to close the transmission investment gap and deliver essential infrastructure.
The project is aligned with Kenya’s Least Cost Power Development Plan and KETRACO’s Transmission Master Plan. It will facilitate the integration of geothermal and wind energy, including power from Baringo–Silali and the Lake Turkana Wind Power Project, reducing dependence on expensive thermal generation.
Africa50 Chief Executive Officer Alain Ebobissé described the deal as a pioneering Africa-led independent power transmission model that could be replicated across the continent. Power Grid Corporation of India Chairman and Managing Director Dr. R.K. Tyagi said the collaboration blends global technical expertise with innovative structuring to unlock Africa’s energy potential.
