 public-private partnership (PPP) agreement to strengthen electricity transmission network){kind=link}
Kenya has signed a 40.4 billion shilling ($311 million) public-private partnership (PPP) agreement to expand and strengthen its electricity transmission network, the government said on Tuesday.
The agreement was signed by state-owned Kenya Electricity Transmission Company (KETRACO), infrastructure investor Africa50, and India’s PowerGrid Corporation. Under the deal, the private partners will finance, build, operate and maintain two high-voltage transmission lines and related substations.
Treasury officials said the project would improve grid reliability, reduce technical losses and load shedding, and support the integration of renewable energy into the national system.
“This investment strengthens the transmission backbone required for economic growth and reliable power supply,” Treasury Cabinet Secretary John Mbadi said in remarks delivered at the signing ceremony.
The project includes a 400-kilovolt Lessos–Loosuk line in the Rift Valley and a 220-kilovolt Kibos–Kakamega–Musaga line serving western Kenya. It is expected to enable the integration of about 300 megawatts of geothermal power and improve electricity supply across the North Rift and Western regions.
Kenya is using public-private partnerships to accelerate infrastructure development while limiting pressure on public finances, as demand for power rises alongside industrial and commercial growth.
The project will also include compensation for affected communities and measures to support local contractors and skills transfer, officials said.