Kenya Secures $311 Million Deal for New High-Voltage Power Lines
Kenya has signed a $311 million investment agreement to construct two high-voltage electricity transmission lines in partnership with Africa50, a pan-African infrastructure fund, and PowerGrid Corporation of India, the country’s finance ministry announced on Monday.
The initiative marks another step in Kenya’s growing reliance on public-private partnerships to fund major infrastructure projects amid rising debt and limited fiscal space. By securitising specific revenue streams, the government aims to attract private investment without further burdening public finances.
Partnership to Design, Build and Operate
Under the deal, Africa50 and PowerGrid will collaborate to design, finance, construct and operate the two transmission lines and related substations. The project will run under a 30-year concession, with the partnership overseeing the full lifecycle of the infrastructure—from development and construction to long-term operation.
Africa50 said the project would “unlock cleaner, affordable, and more reliable power for millions of Kenyans.” While details on the precise investment breakdown and expected increase in transmission capacity were not disclosed, the project is expected to significantly enhance the stability and efficiency of Kenya’s national grid.
Kenya Electricity Transmission Company Limited (KETRACO), the state-owned transmission utility, will serve as the contracting entity.
Boosting Energy Reliability
The finance ministry said the new transmission lines would help stabilise the national grid, reduce technical losses, and support the integration of renewable energy into the power system. Kenya, which already sources more than 80% of its electricity from renewable sources, continues to face challenges from grid overloads and periodic nationwide blackouts triggered by surging demand.
By improving transmission capacity, the project aims to reduce load shedding and accommodate growing energy needs without overstressing existing infrastructure.
Private Sector Role in Infrastructure Development
President William Ruto’s administration has turned to private sector partnerships as traditional funding options become constrained by Kenya’s debt levels and public resistance to new taxes. However, critics have raised concerns that such agreements could expose the state to hidden liabilities through non-transparent contract terms.
The government has dismissed those criticisms, insisting that structured private participation is essential to maintaining infrastructure investment momentum.
A previous plan to collaborate with India’s Adani Group on similar projects was scrapped last year after the company’s founder was indicted in the United States.
with inputs from Reuters