KETRACO has signed a landmark KES 40.4 billion (USD 311 million) Public-Private Partnership with Africa50 and Power Grid Corporation of India (POWERGRID), marking a major step in transforming Kenya’s power transmission network.
Fully financed and implemented by the private sector, the project protects public funds while accelerating delivery of critical energy infrastructure and freeing government resources for priority social sectors.
CS National Treasury, John Mbadi said: “Thanks to the PPP Directorate, the project is fully financed by the private partner. Cost recovery occurs only after independent certification, and the 30-year concession covers design, construction, financing, operation & maintenance”.
The project will deliver two strategic high-voltage transmission lines: the 400kV Lessos–Loosuk line, evacuating up to 300 MW of geothermal power from Baringo-Silali, and the 220kV Kibos–Kakamega–Musaga line, extending high-voltage connectivity to Western Kenya for the first time, reducing voltage instability and technical losses. Together, these investments will strengthen grid reliability, integrate renewable energy, and lower reliance on expensive thermal generation.
According to CS Energy, Hon. Wandayi: “This partnership between KETRACO and Africa50 reflects strong investor confidence in Kenya’s energy sector and accelerates access to reliable, affordable electricity while driving long-term energy security through innovative financing”.
Structured under a 30-year availability-based concession, payments will only be made after independent certification, reflecting strong fiscal discipline and value-for-money principles. The project aligns with Kenya’s Least Cost Power Development Plan and KETRACO’s Transmission Master Plan, supporting industrialization, job creation, regional integration, and long-term energy security.
Initiated as a Privately Initiated Proposal under the PPP Act, 2021, the project received full regulatory, legal, and financial approvals, with construction expected to begin within 12 months. This transaction sets a strong precedent for scaling private capital into Africa’s power infrastructure and demonstrates the impact of well-structured PPPs in delivering sustainable development outcomes.
