• Deal covers two new high-voltage transmission lines

• Private partners will finance and build under a 30-year concession

• Project aims to cut outages and support economic activity

Kenya on December 15 signed a $311 million agreement to develop two new high-voltage power transmission lines. The project is structured as a public-private partnership between state-owned transmission company KETRACO, Africa50, and India’s state-owned PowerGrid Corp.

Under the arrangement, private partners will finance and build the infrastructure with no upfront disbursement by the state. The concession will run for 30 years, after which the assets will be transferred to KETRACO. Payments will be based on the actual availability of the infrastructure, as certified by an independent expert.

The project targets two strategic corridors of the national grid. The 400 kV Lessos–Loosuk line will enable the evacuation of up to 300 MW of geothermal power from the Baringo-Silali fields. The 220 kV Kibos–Kakamega–Musaga line will extend the grid in the western part of the country, an area long affected by frequent outages and high technical losses. The aim is to improve power reliability and support local economic activity.

“This partnership (…) id consortium demonstrates the strength of Kenya’s investment environment and the confidence of global partners in our energy agenda. We are not only accelerating access to reliable and affordable electricity, but also laying the foundation for industrialization, job creation, and inclusive economic growth. This is how we turn policy into progress,” Energy Minister Opiyo Wandayi said.

Kenya is facing a growing imbalance between power generation and transmission capacity. Electricity production, particularly from geothermal and wind sources, has expanded rapidly, while the transmission network has struggled to keep pace. Grid congestion and recurring outages have weighed on the economy, affecting industrial productivity and service quality.

The strain has resulted in frequent load shedding. On November 5, 2025, President William Ruto said during an exchange with the Kenyan diaspora that between 5 p.m. and 10 p.m., electricity must be cut in some areas to supply others.

Under its 2023–2042 development plan, KETRACO plans to build about 5,700 km of new transmission lines and expand the network to around 9,600 km over 20 years. The new agreement is expected to partially address this shortfall and speed up construction by transferring part of the risk to the private sector.

Olivier de Souza