Kenya Signs Sh40.4 Billion PPP to Strengthen Electricity Grid

Nairobi: The Kenya Electricity Transmission Company Limited (KETRACO) has signed a landmark National Transmission Infrastructure Public Private Partnership (PPP) agreement with Africa50 and India's PowerGrid Corporation. According to Kenya News Agen...

Nairobi: The Kenya Electricity Transmission Company Limited (KETRACO) has signed a landmark National Transmission Infrastructure Public Private Partnership (PPP) agreement with Africa50 and India’s PowerGrid Corporation.

According to Kenya News Agency, the signing ceremony was attended 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 PPP Directorate, KETRACO Board and Management, and representatives of Africa50 and PowerGrid.

In remarks delivered on his behalf by the Principal Secretary for the National Treasury, Dr. Chris Kiptoo, Cabinet Secretary John Mbadi emphasized Kenya’s determination to accelerate economic development through strategic energy infrastructure investments. He highlighted that the project strengthens a vital transmission backbone for economic expansion, regional development, and national resilience.

CS Mbadi noted the evolving global energy landscape as nations pursue cleaner and more efficient power systems. He stressed that Kenya continues to advance in this environment, with PPPs attracting capital and technical expertise while safeguarding fiscal discipline and national priorities.

The USD 311 million (KES 40.4 billion) project is fully financed and implemented by the private sector, covering the design, construction, financing, operation, and maintenance of two high-voltage transmission lines and associated substations. It aims to enhance system stability, reduce technical losses and load shedding, and integrate renewable energy.

The first corridor, the 400 kV Lessos-Loosuk line, traverses several counties, including Samburu, Baringo, Nandi, and Elgeyo Marakwet. It introduces an alternative route for evacuating wind power from Lake Turkana, strengthens system stability, and enables the evacuation of geothermal power from the Baringo-Paka-Silali resource zone.

The second corridor, the 220 kV Kibos-Kakamega-Musaga line, serves Kisumu, Vihiga, and Kakamega counties. It improves regional network adequacy and reduces technical losses and load shedding in Western Kenya.

CS Mbadi announced the project will facilitate the integration of 300 MW of geothermal power, strengthen renewable energy evacuation, and bolster system reliability across North Rift and Western regions. It aims to provide grid support for industrial activity, commercial investment, and regional economic zones, ensuring reliable electricity for various sectors.

The project incorporates social safeguards, engaging local consultants and subcontractors, providing opportunities for women, youth, and persons with disabilities, and ensuring knowledge transfer for specialized expertise. Affected persons will receive fair compensation for land, crops, structures, and income loss, with livelihood restoration measures to maintain community stability.

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