The Kenya Electricity Transmission Company (KETRACO) has entered into a public-private partnership (PPP) agreement with a consortium consisting of Africa50 and the Power Grid Corporation of India, for two high-voltage electricity transmission lines.
Valued at $311m, this project will be completely financed and implemented by the private sector with no commitment of public funds.
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The project involves designing, financing, construction, operation, and maintenance of two major high-voltage transmission lines and associated substations.
Proponents of this project is a consortium of Africa50, an infrastructure investment platform supported by 33 African governments, two African central banks, the African Development Bank Group, and South Africa’s Public Investment Corporation, as well as Power Grid Corporation of India.
The transmission lines and substations are expected to improve grid reliability, integrate renewable energy, and reinforce power supply across Western and Northern Kenya.
The project began in 2018 as a privately initiated proposal and received procurement approval under Section 61 of the PPP Act 430 in July 2021.
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By GlobalDataThe PPP covers two key transmission corridors – one comprising an approximately 180km, 400kV double-circuit line from Lessos to Loosuk, with a new 400/220kV substation at Lessos and a 400kV switch station at Loosuk; and another, an approximately 72km, 220kV double-circuit line from Kibos to Kakamega to Musaga.
The Kibos-Kakamega-Musaga line will feature a 2x45MVA, 220/33kV substation at Kakamega and a 2×90 MVA, 220/132kV substation at Musaga.
Cabinet Secretary for Ministry of Energy Opiyo Wandayi EGH said: “This partnership between KETRACO and Africa50-PowerGrid 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 industrialisation, job creation, and inclusive economic growth. This is how we turn policy into progress.”
According to the agreement, Africa50 and Power Grid Corporation of India will create a project company to manage the transmission throughout its entire life cycle, from construction through operations, over a 30-year concession period.
The project fully aligns with Kenya’s Least Cost Power Development Plan and KETRACO’s Transmission Master Plan.
The new infrastructure will be pivotal in integrating geothermal and wind energy, especially from the Baringo-Silali fields and the Lake Turkana wind power project.
In October 2024, KETRACO entered into a strategic partnership with Adani Energy Solutions to bolster electricity infrastructure in Kenya.
