Kenya Signs Landmark National Transmission Infrastructure PPP to Strengthen Power Grid and Accelerate Economic Growth

 Principal Secretary, National Treasury, Dr. Chris Kiptoo, today witnessed the signing of a landmark  National Transmission Infrastructure Public–Private Partnership (PPP) agreement between the **Kenya Electricity Transmission Company Limited (KETRACO), Africa50, and PowerGrid Corporation of India, marking a major milestone in strengthening Kenya’s national power transmission backbone.

The signing ceremony was graced by Principal Secretaries Dr. Bonface Makokha (Economic Planning), Cyrell Odede (Public Investment and Asset Management), Alex Wachira(Energy), Director General Eng. Kepha Seda of the Public Private Partnership Directorate, the Board and Management of KETRACO, and representatives of Africa50 and PowerGrid Corporation of India.

Reading remarks on behalf of the Cabinet Secretary for the National Treasury, Hon. FCPA John Mbadi, PS Dr. Kiptoo underscored Kenya’s determination to accelerate economic development through strategic investments in energy infrastructure, supported by sound policy, disciplined planning, and innovative financing models.

“This project fortifies a transmission backbone that is vital for economic expansion, regional development, and national resilience. It reflects the Government’s commitment to delivering reliable, affordable, and sustainable electricity to households, businesses, and public institutions,” PS Dr. Kiptoo said.

He emphasized that as the global energy landscape rapidly evolves—driven by renewable energy expansion, reliability enhancement, and cleaner power systems—Public–Private Partnerships remain central to Kenya’s progress, enabling the mobilization of capital and technical expertise while safeguarding fiscal discipline and national priorities.

The  USD 311 million (KES 40.4 billion) project, fully financed and implemented by the private sector, covers the design, construction, financing, operation, and maintenance of two high-voltage transmission lines and associated substations. The project establishes new transmission corridors to enhance grid stability, reduce technical losses and load shedding, and facilitate the integration of renewable energy.

The first corridor, the 400 kV Lessos–Loosuk transmission line, traverses Samburu, Baringo, Nandi, and Elgeyo Marakwet counties, with substations at Lessos and Loosuk. It provides an alternative evacuation route for wind power from Lake Turkana, strengthens system stability by sectioning the 430-kilometre Loiyangalani–Suswa line, establishes a reinforced 400 kV loop within the national grid, and enables evacuation of geothermal power from the Baringo–Paka–Silali resource zone.

The second corridor, the 220 kV Kibos–Kakamega–Musaga transmission line, serves Kisumu, Vihiga, and Kakamega counties**, with substations at Kibos, Kakamega, and Musaga. It will provide high-voltage supply to Kakamega, enhance regional network adequacy, and significantly reduce technical losses and load shedding in Western Kenya.

PS Dr. Kiptoo noted that the project will facilitate the integration of 300 MW of geothermal power, strengthen renewable energy evacuation, and enhance system reliability across the North Rift and Western regions. The improved grid capacity will support industrial activity, commercial investment, and regional economic zones, while ensuring reliable electricity for schools, hospitals, businesses, and agricultural operations through irrigation, mechanization, processing, and storage.

The project also incorporates robust environmental and social safeguards, engaging local consultants and subcontractors, creating opportunities for women, youth, and persons with disabilities, and ensuring knowledge transfer where specialized expertise is required. Project-affected persons will receive prompt and fair compensation for land, crops, structures, and income loss, alongside livelihood restoration measures to safeguard community stability.

Speaking during the signing, KETRACO Acting Managing Director and Chief Executive Officer, Eng. Kipkemoi Kibias, described the agreement as a transformative step toward a stronger and more resilient national transmission system.

“This partnership with Africa50 and PowerGrid mobilizes innovative financing, transfers global best practices, and builds local capacity, while creating meaningful opportunities for Kenyan engineers and contractors,” Eng. Kibias said.

He reaffirmed KETRACO’s commitment, working closely with the Ministry and other stakeholders, to facilitate timely approvals, wayleave acquisition, coordination with county governments, and robust monitoring to ensure smooth and timely implementation.

Eng. Kibias concluded by reiterating KETRACO’s mandate to deliver world-class transmission infrastructure that strengthens Kenya’s power grid and supports long-term economic growth, energy security, and sustainable development.