Kenya Signs $311m Deal for New Power Transmission Lines

Kenya has signed a $311 million agreement for the construction of two high-voltage electricity transmission lines in partnership with Africa50, a pan-African infrastructure fund, and India’s PowerGrid Corporation, the country’s finance ministry said on Monday.

The project, structured as a public-private partnership, is aimed at expanding electricity transmission capacity and improving grid reliability amid rising demand and constrained public finances.

Under the agreement, Africa50, a Morocco-based infrastructure fund largely owned by African states, will partner PowerGrid to design, finance, construct and operate the transmission lines and associated substations.

In a statement, Africa50 said the project company would oversee the full lifecycle of the infrastructure, from construction through operation, under a 30-year concession arrangement.

The fund said the project would help unlock cleaner, more affordable and reliable electricity for millions of Kenyans.

Kenya Electricity Transmission Company Limited (KETRACO), a state-owned firm, will serve as the contracting authority for the project.

The finance ministry said the new transmission lines would enhance system stability, reduce technical losses and load shedding, and support the integration of renewable energy into the national grid.

Kenya has experienced repeated nationwide blackouts in recent years, often linked to demand-driven overloads on existing infrastructure.

With high public debt and limited fiscal space restricting traditional borrowing, the government has increasingly turned to private-sector partnerships and the securitisation of revenue streams to fund major infrastructure projects.

President William Ruto’s administration has defended the strategy, despite criticism that such arrangements could expose the state to hidden liabilities through opaque contracts.

An earlier attempt by the government to develop transmission infrastructure with India’s Adani Group was cancelled last year after the company’s founder was indicted in the United States.