• Kenya signs a $311 million investment agreement to build two high-voltage transmission lines

• Africa50 and PowerGrid Corporation of India join the project under a 30-year PPP concession

• The investment responds to record electricity demand that peaked at 2,439.06 MW in December 2025

In Kenya, the power transmission network regularly faces operational constraints that slow electricity delivery and weaken supply reliability. Authorities continue to seek solutions to ease these bottlenecks.

Kenyan authorities, through Kenya Electricity Transmission Company Limited (KETRACO), the state-owned power transmission operator, signed a $311 million investment agreement. The deal targets the design, financing, construction and operation of two high-voltage electricity transmission lines.

According to information reported by the international press on Monday, December 15, the contract brings together Africa50, a pan-African infrastructure fund based in Morocco and majority-owned by African states. PowerGrid Corporation of India Limited, an Indian state-owned company specializing in power transmission networks, also participates in the agreement.

The two transmission lines and their associated substations will operate at 400 kilovolts (kV) and 220 kV. These voltage levels aim to reduce technical losses.

Authorities consider this type of infrastructure essential to transport large volumes of electricity over long distances and to prevent localized grid congestion.

The project relies on a public-private partnership (PPP) structure. Private partners will finance and operate the infrastructure in exchange for a 30-year concession.

The project comes as Kenya’s power grid faces mounting pressure from rapidly growing demand. In early December 2025, Kenya Power and Lighting Company (KPLC), the state-owned electricity distributor, announced a record peak demand of 2,439.06 megawatts (MW).

This peak marked the highest level ever recorded on Kenya’s electricity network. The new record followed several recent highs and reflected sustained growth in household and industrial demand.

This trend affects a transmission system spanning about 9,484 kilometers of lines rated at 132 kV and above, which must simultaneously meet domestic needs and support regional power trade.

This investment aligns with broader reforms in Kenya’s electricity sector. Authorities aim to attract private capital while improving the performance of public operators such as Kenya Electricity Generating Company (KenGen).

In parallel, as Ecofin Agency reported in late November, authorities also tightened legal oversight of contracts signed with private sector partners.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum