KETRACO Inks $311M PPP Deal with Africa50 and India’s POWERGRID for Major Transmission Upgrade
The Kenya Electricity Transmission Company Limited (KETRACO) has signed a groundbreaking Public-Private Partnership (PPP) agreement with a consortium of Africa50 and Power Grid Corporation of India (POWERGRID), paving the way for a $311 million (KES 40.4 billion) project to bolster Kenya’s power grid.
National Treasury Principal Secretary Dr. Chris Kiptoo said the project will be fully financed by private investors, easing pressure on public funds while fast-tracking the delivery of reliable power to meet the country’s growing electricity demand.
This fully private-sector-financed initiative marks Kenya’s first Independent Power Transmission (IPT) project under the PPP model, with no public funds involved.
The consortium will design, finance, construct, operate, and maintain two critical high-voltage transmission lines and associated substations over a 30-year concession period. Assets will revert to KETRACO upon expiry.
The project features the 180km 400kV Lessos–Loosuk double-circuit line, traversing Nandi, Elgeyo Marakwet, Baringo, and Samburu counties. It includes a new 400/220kV substation at Lessos and a 400kV switch station at Loosuk.
This line will provide an alternative route to evacuate up to 300MW from the Lake Turkana Wind Power Plant and support future geothermal development in Baringo County.
The second component is the 72km 220kV Kibos–Kakamega–Musaga double-circuit line, extending high-voltage grid into Western Kenya for the first time. It includes 2x45MVA substations at Kakamega (220/33kV) and 2x90MVA at Musaga (220/132kV), benefiting Kisumu, Vihiga, and Kakamega counties by reducing voltage instability, technical losses, and supporting industrial growth.
Energy PS Alex Wachira hailed the deal as a “landmark achievement,” emphasizing its role in accelerating reliable electricity access, industrialization, and job creation. Kiptoo stressed the project’s fiscal prudence, with costs recovered through performance-based availability payments.
KETRACO Acting MD Eng. Kipkemoi Kibias noted the PPP addresses a $5 billion funding gap for 8,000km of new lines over 20 years. Africa50 CEO Alain Ebobissé called it an “Africa-first innovation” replicable continent-wide, while POWERGRID’s Dr. R.K. Tyagi highlighted shared expertise for Kenya’s energy potential.
Aligned with Kenya’s Least Cost Power Development Plan, the project will integrate renewables, reduce thermal reliance, and deliver cleaner, affordable power to millions.