• Kenya signs $311 million deal to build two high-voltage power lines
• Private partners finance, build, operate lines under 30-year concession
• New lines aim to cut outages and ease grid congestion

Kenya secured a $311 million deal on Monday to develop two new high-voltage power lines. The public-private partnership brings together state-owned Kenya Electricity Transmission Company (KETRACO), investment platform Africa50, and India’s state-owned Power Grid Corporation.

Under the arrangement, private partners will finance and build the project without upfront state funding, operating the infrastructure under a 30-year concession before transferring the assets to KETRACO. Payments will be linked to the actual availability of the transmission lines and verified by an independent expert.

The project covers two strategic corridors. A 400-kilovolt line between Lessos and Loosuk will carry up to 300 megawatts of geothermal power from the Baringo-Silali fields into the national grid. A separate 220-kilovolt line connecting Kibos, Kakamega and Musaga will extend the grid westward, a region that has long suffered from frequent outages and high transmission losses. The objective is to improve electricity reliability and support local economic activity.

“This partnership between KETRACO and Africa50 reflects strong investor confidence in Kenya’s energy sector and accelerates access to reliable and affordable electricity, while strengthening long-term energy security through innovative financing,” Energy Minister Opiyo Wandayi said.

Kenya is facing a growing imbalance between electricity generation and transmission capacity. Power output, particularly from geothermal and wind sources, has expanded rapidly, while the transmission network has struggled to keep pace. Congestion on the grid and recurring outages have imposed significant costs on the economy, disrupting industrial output and the quality of services.

As a result, the country has experienced frequent power cuts. On Nov. 5, President William Ruto told members of the Kenyan diaspora that electricity supply must be curtailed in some areas between 5 p.m. and 10 p.m. to maintain supply elsewhere.

Under its 2023-2042 development plan, KETRACO aims to build nearly 5,700 kilometres of new transmission lines, expanding the network to about 9,600 kilometres over the next two decades. The new deal addresses part of that shortfall and is expected to accelerate delivery by shifting some construction and operational risks to the private sector.

Olivier de Souza