Kenya has signed a $311 million agreement to construct two high-voltage electricity transmission lines, marking a significant step in efforts to reinforce the national power grid. The deal brings together Africa50, a pan-African infrastructure fund, and PowerGrid Corporation of India, with the project set to operate under a public-private partnership (PPP) model, reflecting Kenya’s growing reliance on private capital to fund major infrastructure.
The agreement comes amid high public debt and limited fiscal space, prompting the government to increasingly explore alternative financing mechanisms such as PPPs and the securitisation of selected revenue streams. Officials say this approach allows the country to expand critical infrastructure without placing immediate strain on public finances.
Under the arrangement, Africa50—headquartered in Morocco and largely owned by African states—will partner with PowerGrid Corporation of India to design, finance, construct, and operate the transmission lines and associated substations. The project company will oversee the full infrastructure lifecycle over a 30-year concession period, ensuring long-term maintenance and operational stability.
Kenya Electricity Transmission Company Limited (KETRACO), a state-owned utility, will act as the contracting authority. According to the finance ministry, the new transmission lines are expected to improve grid stability, reduce technical losses, cut incidents of load shedding, and facilitate the integration of renewable energy sources. In recent years, overloads driven by rising demand have contributed to repeated power disruptions, including nationwide blackouts, underscoring the urgent need for network expansion.
While the specific increase in transmission capacity was not disclosed, officials emphasised that the new lines will help meet growing electricity demand without overburdening existing infrastructure. Africa50 said the project will make cleaner, more affordable, and more reliable power accessible to millions of Kenyans.
President William Ruto’s administration has actively promoted private sector involvement in infrastructure development. Critics, however, caution that such deals may carry hidden liabilities due to limited transparency. The government maintains that PPPs are a necessary solution given current financial constraints.
The agreement follows the cancellation of a previous transmission project with India’s Adani Group last year, after the company’s founder faced legal action in the United States.
