Kenya Secures $311 Million to Modernize Its Power Transmission Network
Africa50 and PowerGrid Corporation of India join forces with Kenya to upgrade the grid
A 30-year PPP arrangement will fund, build, and run two high-voltage transmission lines
Peak electricity demand in Kenya surged to a new high of 2,439.06 MW in December 2025, underscoring the need for stronger transmission capacity
In Kenya, the national grid often experiences bottlenecks that impede power delivery and undermine reliability. Regulators are actively pursuing fixes to ease these constraints.
Through Kenya Electricity Transmission Company Limited (KETRACO), the state-controlled operator of the power transmission network, a $311 million investment was signed to design, finance, construct, and operate two new high-voltage lines.
International media outlets reported on December 15 that Africa50, a pan-African infrastructure fund headquartered in Morocco and majority-owned by African governments, is participating. PowerGrid Corporation of India Limited, a government-backed Indian company with expertise in transmission networks, is also a participant.
The project includes two transmission corridors and their associated substations, designed to operate at 400 kilovolts (kV) and 220 kV. The higher voltage level aims to minimize technical losses and improve efficiency across long distances.
Officials view this infrastructure as essential for moving large blocks of electricity across extensive networks, reducing congestion at the regional level, and supporting cross-border power trade.
The initiative is structured as a public-private partnership (PPP). Private sector partners will provide financing and operate the facilities in exchange for a 30-year concession.
The investment arrives amid mounting demand pressures on Kenya’s power system. KPLC, the state-owned electricity distributor, reported a record peak of 2,439.06 MW in early December 2025, reflecting steady growth in both household and industrial consumption.
The proposed upgrades would bolster a transmission system spanning roughly 9,484 kilometers of lines rated at 132 kV and higher, enabling domestic supply to grow while facilitating regional electricity exchanges.
This move aligns with ongoing reforms in Kenya’s electricity sector, which aim to attract private capital and enhance performance at public utilities such as KenGen. Concurrently, Ecofin Agency noted that regulators have tightened oversight on contracts with private partners to strengthen accountability.
Original publication: French — Abdel-Latif Boureima. English adaptation by Ange Jason Quenum.
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