Kenya Electricity Transmission Company Limited, the state-owned transmission system operator, has signed a $311mn investment deal to strengthen the country’s electricity transmission infrastructure. The project covers the design, financing, construction, and operation of two new high-voltage transmission lines and their associated substations.
A public-private partnership focused on strategic infrastructure
The agreement involves a public-private partnership with Africa50, a pan-African infrastructure fund based in Casablanca, and PowerGrid Corporation of India Limited, a state-owned Indian transmission company. These entities will implement and operate the project under a 30-year concession. The new lines, operating at 400 kilovolts (kV) and 220 kV, are intended to maximise long-distance transmission capacity and improve network stability.
The government sees this partnership as a way to reduce technical losses and secure power supply, as the network frequently faces local congestion and outdated infrastructure.
A response to rising domestic demand
This initiative comes amid increasing pressure on Kenya’s electricity system. In early December, Kenya Power and Lighting Company, the public distribution utility, reported a peak demand of 2,439.06 megawatts (MW), the highest ever recorded in the country. This rise is attributed to continued growth in both domestic and industrial consumption.
With over 9,400 kilometres of high-voltage transmission lines (132 kV and above), the grid must also support regional electricity trade, particularly with members of the Common Market for Eastern and Southern Africa (COMESA). Infrastructure modernisation is thus aimed at securing national delivery reliability while strengthening regional energy integration.
A reform framework to attract private capital
The project forms part of a broader reform strategy in Kenya’s energy sector. Authorities are pursuing various initiatives to attract private investment in critical infrastructure while reorganising institutional frameworks. Regulatory adjustments have recently been introduced to tighten oversight of contracts signed with foreign partners, especially in generation and distribution.
State-owned companies such as Kenya Electricity Generating Company are also part of this strategy to improve operational efficiency and build investor confidence. The approach reflects a broader effort to rebalance public and private participation in Kenya’s energy infrastructure without relinquishing national control over strategic assets.
