Kenya signs landmark $311m power transmission deal to strengthen National grid.

By Moses Akarh
Published: December 16, 2025

On Monday, December 15, 2025, Kenya took a major stride in modernizing its energy sector by signing a $311 million public-private partnership (PPP) agreement aimed at upgrading and expanding the nation’s power transmission network. This transformative investment underscores Kenya’s commitment to reliable electricity access and its vision of achieving a fully sustainable energy sector.

Major Power Infrastructure Deal Details

The deal, valued at approximately KSh 40.4 billion, was signed by the Kenya Electricity Transmission Company Limited (KETRACO) alongside two major partners: Africa50, a pan-African infrastructure investment fund, and the Power Grid Corporation of India. This collaboration reflects a growing trend in Kenya towards public-private partnerships to finance critical infrastructure, thereby reducing the reliance on government funding and leveraging international expertise.

Key Features of the Agreement:

Total Value: $311 million (≈ KSh 40.4 billion)

Partners: KETRACO, Africa50, Power Grid Corporation of India

Structure: Public-Private Partnership (PPP)

Scope: Design, finance, build, operate, and maintain two high-voltage transmission lines to improve grid stability and support renewable energy integration.

Transmission Lines and Strategic Impact

The project focuses on constructing 202 kilometers (125 miles) of high-voltage lines in Kenya’s western region, an area that has historically faced frequent power losses and supply unreliability. The two critical lines included in the project are:

Lessos to Loosuk Line: Estimated at $214 million, this line will strengthen electricity delivery to western counties, reducing outages and stabilizing the regional grid.

Kibos–Kakamega–Musaga Line: Valued at $97 million, this line will further improve reliability, particularly for northern and western Kenya.

These projects are expected to significantly lower technical losses, which were estimated at 23% in 2023, and facilitate the evacuation of renewable energy from geothermal and hydroelectric sources, a sector where Kenya has established global leadership.

Kenya’s Broader Energy Vision

This $311 million transmission project is part of a larger strategy to achieve universal electricity access by 2030 while relying predominantly on clean energy sources. Key initiatives include:

National Infrastructure Fund: The Cabinet has approved a KSh 5 trillion (~$38 billion) fund to mobilize public and private capital for infrastructure projects nationwide, with a strong focus on the power sector.

Electricity Capacity Expansion: Kenya plans to add 10,000 MW to the national grid over the next seven years, surpassing the current installed capacity of 3.3 GW, to support industrial growth and urban development.

Olkaria VII Geothermal Project: Expansion plans for Olkaria VII aim to add 80.3 MW by 2027, further reducing fossil fuel dependence and reinforcing Kenya’s status as a geothermal powerhouse.

Significance of the Deal

This landmark agreement is a testament to Kenya’s proactive approach in mobilizing international partnerships and innovative financing to de-risk critical infrastructure investments. By leveraging PPP models, Kenya not only attracts foreign investment but also ensures efficiency and technical expertise in implementing complex projects.

Experts suggest that these transmission lines will not only stabilize electricity supply in the targeted regions but will also create opportunities for industrial and technological growth by ensuring a reliable power flow to key commercial hubs. Additionally, these projects align seamlessly with Kenya’s long-term ambition to integrate more renewable energy into the national grid.

Regional and Economic Implications

Improved power transmission in western and northern Kenya is expected to attract both domestic and foreign investment in industrial, agricultural, and commercial sectors. Reliable energy supply is crucial for manufacturing, agro-processing, and ICT hubs, which are central to Kenya’s Vision 2030 industrialization targets.

Furthermore, the collaboration with Africa50 and the Power Grid Corporation of India sets a precedent for future cross-border infrastructure investments in Africa. This model could be replicated in other energy projects across the continent, contributing to regional stability and sustainable development.

Conclusion

The $311 million Kenya power transmission deal is more than just an infrastructure project—it represents a strategic investment in the nation’s future. By combining international expertise, innovative financing, and a commitment to renewable energy, Kenya is positioning itself as a regional leader in energy innovation.

As the project moves into the construction phase, the country looks forward to a future where electricity supply is more stable, efficient, and greener, powering economic growth and improving the quality of life for millions of Kenyans.