Kenya has taken a major step to strengthen its electricity transmission network after the Kenya Electricity Transmission Company Limited (KETRACO) signed a landmark Public Private Partnership (PPP) agreement with Africa50 and PowerGrid Corporation of India.

The agreement was witnessed by Principal Secretary for the National Treasury, Chris Kiptoo, who represented the Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi. The signing brought together senior government officials, KETRACO’s board and management, and representatives of the private sector partners.

Also present were Principal Secretaries Bonface Makokha (Economic Planning), Cyrell Odede (Public Investment and Asset Management), Alex Wachira (Energy), and the Director General of the PPP Directorate, Kepha Seda.

Speaking at the event, Kiptoo said the project reflects Kenya’s commitment to accelerate economic growth through strategic investment in energy infrastructure. He noted that a strong transmission network is essential for reliable electricity supply, regional development, and national resilience.

He said the government continues to rely on PPPs to attract private capital and technical expertise while protecting public finances and national priorities. According to Kiptoo, PPPs allow Kenya to expand critical infrastructure without placing pressure on the national budget.

“The global energy landscape is evolving rapidly as nations expand renewable energy, enhance reliability, and pursue cleaner, more efficient power systems. Kenya continues to advance within this environment, and Public Private Partnerships play a central role in this progress,” Kiptoo stated.

“Through PPPs, the government attracts capital and technical expertise while safeguarding fiscal discipline and national priorities.”

Power lines and impact

The project is valued at USD 311 million, equivalent to about Ksh40.4 billion. The private sector will fully finance, design, build, operate, and maintain the infrastructure. The project includes two high-voltage transmission lines and several substations, which will open new transmission corridors across the country.

The first corridor is the 400 kV Lessos–Loosuk line. It will pass through Samburu, Baringo, Nandi, and Elgeyo Marakwet counties, with substations at Lessos and Loosuk. This line will provide an alternative route for evacuating wind power from Lake Turkana and improve grid stability by easing pressure on the existing Loiyangalani–Suswa line.

It will also support the evacuation of geothermal power from the Baringo–Paka–Silali resource area.

The second corridor is the 220 kV Kibos–Kakamega–Musaga line. It will serve Kisumu, Vihiga, and Kakamega counties, with substations at Kibos, Kakamega, and Musaga. The line will improve high-voltage power supply to Kakamega and reduce technical losses and power outages across Western Kenya.

Kiptoo said the project will support the integration of 300 megawatts of geothermal power into the national grid. It will also strengthen the evacuation of renewable energy and improve system reliability in the North Rift and Western regions.

He added that reliable electricity will support industrial growth, commercial investment, and regional economic zones. Schools, hospitals, farms, and businesses will benefit from stable power supply, including for irrigation, processing, and storage.

The project includes social safeguards to protect local communities. It will engage local consultants and subcontractors, promote opportunities for women, youth, and persons with disabilities, and ensure skills transfer where specialised expertise is required.

Project-affected persons will receive fair and timely compensation, alongside livelihood restoration measures to maintain community stability