Kenya has signed a $311 million agreement to construct two high-voltage electricity transmission lines in partnership with Africa50, a Morocco-based pan-African infrastructure fund, and PowerGrid Corporation of India. The project will be executed through a public-private partnership, reflecting Kenya’s strategy to fund infrastructure amid high public debt and constrained fiscal space.
The agreement involves Africa50 and PowerGrid jointly designing, financing, constructing, and operating the transmission lines and associated substations over a 30-year concession period. The project company will manage the entire lifecycle of the infrastructure, from construction to operation, aiming to deliver cleaner, more affordable, and reliable electricity to millions of Kenyans.
Kenya Electricity Transmission Company Limited (KETRACO), a state-owned firm, will serve as the contracting entity. The finance ministry highlighted that the project will enhance system stability, reduce technical losses and load shedding, and support the integration of renewable energy into the national grid.
The transmission lines are intended to address high demand-driven overloads that have previously caused blackouts nationwide. By expanding infrastructure capacity, the project aims to accommodate rising electricity demand without overloading the grid.
Due to Kenya’s heavy debt burden and limited traditional financing options, the government has increasingly relied on partnerships with private sector entities to fund large infrastructure projects. While some critics argue that such deals could expose the state to additional liabilities through opaque contracts, the government has defended its approach as necessary to meet growing energy needs.
An earlier initiative with India’s Adani Group to build transmission lines was cancelled after the company’s founder faced legal issues in the United States, underscoring the challenges of securing reliable international partnerships for critical infrastructure.
