Kenya has entered into a $311 million agreement to build two high-voltage electricity transmission lines, representing a crucial advancement in the initiative to strengthen the national power grid. This agreement involves Africa50, a pan-African infrastructure fund, and PowerGrid Corporation of India. The project will function under a public-private partnership (PPP) model, highlighting Kenya's increasing dependence on private investment for significant infrastructure projects.
The agreement is established in the context of significant public debt and constrained fiscal capacity, leading the government to progressively investigate alternative financing options like Public-Private Partnerships (PPPs) and the securitization of specific revenue sources. Authorities assert that this strategy enables the nation to enhance essential infrastructure without exerting immediate pressure on public finances.
Under this agreement, Africa50—based in Morocco and primarily owned by African nations—will collaborate with PowerGrid Corporation of India to plan, finance, build, and manage the transmission lines and related substations. The project company will supervise the entire infrastructure lifecycle throughout a 30-year concession period, guaranteeing sustained maintenance and operational reliability.
The Kenya Electricity Transmission Company Limited (KETRACO), a utility owned by the state, will function as the contracting authority. According to the finance ministry, the anticipated new transmission lines are expected to bolster grid stability, lower technical losses, reduce occurrences of load shedding, and enable the integration of renewable energy sources. Over the past few years, rising demand has caused overloads that have led to recurrent power outages, including nationwide blackouts, emphasizing the pressing need for network expansion.
Though the specific augmentation in transmission capacity was not made public, officials stressed that the new lines will contribute to satisfying the escalating electricity demand without placing additional pressure on the current infrastructure. Africa50 mentioned that the project will deliver cleaner, more affordable, and more reliable power to millions of Kenyans.