The Kenyan government has signed a KSh 40.4 billion public-private partnership (PPP) agreement to bolster the national power transmission network. The deal, inked between the Kenya Electricity Transmission Company Limited (KETRACO) and Africa50 along with India's PowerGrid Corporation, involves building two high-voltage transmission corridors and substations. It aims to enhance grid stability, cut technical losses, and integrate renewable energy sources.
On December 15, 2025, the Kenyan government signed a landmark KSh 40.4 billion public-private partnership (PPP) agreement to reinforce the national power transmission network, thereby improving grid stability, integrating renewable energy, and fostering economic growth. The agreement was executed between the Kenya Electricity Transmission Company Limited (KETRACO) and Africa50 in conjunction with India's PowerGrid Corporation, witnessed by National Treasury Principal Secretary Dr. Chris Kiptoo, reading remarks on behalf of Treasury Cabinet Secretary John Mbadi.
Kiptoo emphasized that the project would fortify Kenya's transmission backbone, essential for national resilience, regional development, and sustained economic expansion, while advancing the provision of reliable, affordable, and sustainable electricity to households, businesses, and public institutions. “Through PPPs, the Government attracts capital and technical expertise while safeguarding fiscal discipline and national priorities,” Kiptoo stated.
The KSh 40.4 billion initiative will be entirely financed, implemented, operated, and maintained by the private sector, encompassing the construction of two high-voltage transmission corridors and associated substations. One corridor is the 400 kV Lessos–Loosuk line, spanning Samburu, Baringo, Nandi, and Elgeyo Marakwet counties. The second is the 220 kV Kibos-Kakamega-Musaga line, serving Kisumu, Vihiga, and Kakamega counties, with substations at Kibos, Kakamega, and Musaga.
It is projected to upgrade high-voltage supply to Kakamega and minimize technical losses and load shedding in Western Kenya. Prior to signing, KETRACO conducted extensive internal and external stakeholder consultations and public participation sessions to promote social acceptability and transparency. This follows the cancellation of a prior deal with the Adani Group by President William Ruto in November 2024 amid corruption allegations and public backlash.
The PPPs aim to secure a dependable and sufficient national grid, enable regional power trade, and boost the adoption of clean renewable energy as Kenya pursues its vision of becoming a First World nation. The government has committed to providing prompt and fair compensation to all project-affected individuals for land, crops, structures, and income losses, coupled with livelihood restoration measures to preserve community stability.
