KETRACO Signs $311M PPP Agreement with Africa50-PGC India to Upgrade Power Grid
On 15 December 2025, the Kenya Electricity Transmission Company Limited (KETRACO) signed an agreement with a Consortium led by Africa50 and the Power Grid Corporation of India (PGCI). The Agreement calls for the upgrade of the transmission network in Kenya, and the Project is estimated at USD 311 million (Ksh 40B).
In addition to Africa50 and #PGCI, the Consortium also roped in the African Development Bank (AfDB) and the Public Investment Corporation of South Africa, amongst others.
“This partnership between KETRACO and Africa50-PowerGrid consortium demonstrates the strength of Kenya’s investment environment and the confidence of global partners in our energy agenda. We are not only accelerating access to reliable and affordable electricity, but also laying the foundation for industrialization, job creation, and inclusive economic growth. This is how we turn policy into progress.”
Kenya Cabinet Secretary at Ministry of Energy Ppiyo Wandayi
As a Public-Private Partnership (#PPP), the Government need not disburse one cent from public funds, while the Consortium will recoup its investment over the 30-year concession. The Project involves the financing, design, construction, operation, and maintenance of two key high-voltage (HV) transmission lines and associated substations in northern and western Kenya.
More specifically, the two main TL lines to be upgraded are the 180-km 400kV Lessos-Loosuk line and the 72-km 22kV Kobos-Kakamega-Musaga line. Kenya already enjoys an #ElectricityAccess rate of 75%, and this Project will enhance reliability, enlarge capacity to integrate renewable energy, and further expand access, as Kenya pushes forward on its green, accessible, and affordable energy agenda.
To guarantee performance, the Special Purpose Vehicle (SPV) to be created will provide robust financial securities. In addition, the Agreement has a clause for #LocalContent requirements to ensure Kenyan suppliers, contractors, and professionals get a piece of the cake.
During the signing ceremony, Acting MD of KETRACO Kipkemoi Kibias outlined the organization’s plan to develop an additional 8,000 kilometers of transmission lines over the next two decades. The mammoth works will require a total investment of about USD 5 billion, which equates to an average input of USD 250 million annually for 20 years.
“KETRACO is currently able to mobilize only a fraction of the USD 250 million annual requirement through traditional funding sources that include support from development partners, Government of Kenya support, and remittances from KPLC. To bridge this significant financing gap, KETRACO is deliberately leveraging private sector participation through PPPs to support the development, financing, and delivery of transmission line projects. The signing of this Public-Private Partnership agreement with Africa50 and Power Grid Corporation of India reflects our strong commitment to innovative financing solutions in infrastructure delivery.”
KETRACO Ag. MD Kipkemoi Kibias
The Project is in line with Kenya’s Least Cost Power Development Plan (LCPDP) and KETRACO’s Transmission Master Plan. It will enable Kenya to leverage and integrate more of its geothermal, wind, and photovoltaic resources into the grid. By so doing, Kenya will bolster its #EnergyTransition while driving down the cost of electricity, which will be essential to its #industrialization phase.