KETRACO signs landmark Public-Private Partnership with Africa50 and Powergrid Corporation of India to deliver USD311 Million Power Transmission Project
Kenya Electricity Transmission Company Limited (KETRACO) has signed a Public-Private Partnership (PPP) agreement with a consortium comprising Africa50 and Power Grid Corporation of India, marking a major step in the expansion and modernization of Kenya’s power transmission network.
The USD 311 million (KES 40.4 billion) project will be fully financed and implemented by the private sector, with no public funds committed. It covers the design, construction, financing, operation, and maintenance of two high-voltage transmission lines and associated substations to strengthen grid reliability, integrate renewable energy, and improve power supply across Western and Northern Kenya.
Initiated as a Privately Initiated Proposal (PIP) in 2018, the project received all required technical, financial, legal, and regulatory approvals, culminating in the signing of the Project Agreements on December 15, 2025, following clearance from the Energy and Petroleum Regulatory Authority.
The PPP includes two transmission lines: the 180 km 400 kV Lessos–Loosuk double-circuit line, which will provide an alternative route for evacuating up to 300 MW from the Lake Turkana Wind Power Plant and future geothermal power from Baringo; and the 72 km 220 kV Kibos–Kakamega–Musaga double-circuit line, extending the 220 kV grid into Western Kenya for the first time and reinforcing regional system reliability.
Speaking at the signing ceremony, Cabinet Secretary for the Ministry of Energy Opiyo Wandayi EGH said the agreement reflects growing investor confidence in Kenya’s energy sector.
“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… This is how we turn policy into progress.”
Cabinet Secretary for the National Treasury, Hon. John Mbadi, said the financing structure safeguards public resources.
“The project’s financing structure reflects prudent fiscal management. The USD 311 million (KES 40.4 billion) cost will be fully financed by the private partner, safeguarding public resources…”
Under the agreement, a project company established by Africa50 and PowerGrid will deliver the infrastructure over a 30-year concession, with performance-linked availability payments made by KETRACO. All assets will revert to KETRACO at the end of the concession period.
KETRACO Acting Managing Director Eng. Kipkemoi Kibias said PPPs are central to meeting Kenya’s long-term transmission needs.
“To bridge this significant financing gap, KETRACO is deliberately leveraging private sector participation through PPPs… The signing of this Public-Private Partnership agreement reflects our strong commitment to innovative financing solutions in infrastructure delivery.”
Aligned with Kenya’s Least Cost Power Development Plan and KETRACO’s Transmission Master Plan, the project will support large-scale integration of wind and geothermal power, reduce reliance on thermal generation, and lower electricity costs for end users.
