Kenya pledges to end ‘systematic failures’ after signing Sh40.4Bn PPP-funded power line project

The Kenyan government has pledged to reduce significant bureaucratic red tape and lengthy procurement processes to accelerate vital infrastructure projects in critical sectors, such as energy, as it edges closer to breaking ground for the first major public-private partnership (PPP)– backed venture, after a seven-year delay.

Principal Secretary in the State Department of Energy, Alex Wachira, blamed the slow pace in the approval of the Sh40.4 billion ($311 million) PPP agreement, signed on Monday between the Kenya Electricity Transmission Company Limited (KETRACO) and a consortium of Africa50 and Power Grid Corporation of India, as a prime case of a ‘systematic failure’ that must be addressed to avert future similar interruptions.

“This is an early Christmas (2026) for the people of Western and Nyanza regions. But we must end bureaucratic delays,” said Wachira, while reacting to the signing of the deal, a first-of-its-kind in the region, that seeks to expand and modernize Kenya’s power transmission network.

Typically, Public-Private Partnership (PPP) projects are known to take time to start due to complex contracts, unclear risk allocation, regulatory hurdles, land acquisition issues, and significant financial or legal due diligence, among other challenges.

And so often, such projects tend to require strong government capacity to balance private sector needs with public interest, leading to delays in approvals, financing, and project structuring.

“It has taken time, but the last phase should be faster,” reiterated the Principal Secretary in the National Treasury, currently Dr. Chris K. Kiptoo.

The Chief Executive Officer (CEO) of Africa50, signing on behalf of the infrastructure investment platform whose existence is to bridge Africa’s infrastructure funding gap by facilitating project development, as well as mobilizing public and private sector finance, and investing in infrastructure on the continent, Alain Ebobissé, said that the institution was keen to tap into other viable projects in the country.

“We have a lot of appetite, and we are looking at other projects under a similar plan…other first-of-kind transactions in the market,” offered Ebobissé, when asked about the future partnerships with Kenya.

“This partnership shows how strategic collaboration can unlock transformative infrastructure solutions across the continent.”

Terms of the agreement  

Under the terms of the agreement, a project company will jointly be established by Africa50 and PowerGrid to undertake the entire lifecycle of the transmission infrastructure, from construction to operation, over a 30-year concession period.

KETRACO will, on the other hand, make availability payments tied to performance, while both parties will jointly appoint an Independent Expert to oversee delivery and ensure accountability.

Upon expiry of the concession, all project assets will be handed back to the electricity transmission company, “in good condition and free of encumbrances.”

KETRACO Acting Managing Director Eng. Kipkemoi Kibias said the company plans to develop an additional 8,000 kilometers of transmission lines over the next 20 years, requiring about USD 5 billion in investment (translating to USD 250Million annually for the next 20 years).

But constrained public funding, according to Kibias, has necessitated greater private sector participation through PPPs to bridge the financing gap and support the delivery of critical transmission infrastructure.

The PPP projects

“By combining our technical expertise and global excellence in the transmission sector with Africa50’s project development and structuring capabilities, POWERGRID is committed to supporting Kenya, sharing a scalable model with other African countries, and working with Africa50, KETRACO, and other trailblazers to realize Africa’s energy potential,” said Dr. R.K. Tyagi, Chairman and Managing Director of POWERGRID.

The project comprises two major transmission lines, namely, approximately 180km 400kV Lessos–Loosuk double circuit transmission line, with a new 400/220kV substation at Lessos and a 400kV switch station at Loosuk.

The line, which will traverse Nandi, Elgeyo Marakwet, Baringo, and Samburu counties and will become a key alternative route for evacuating up to 300 MW of wind from Lake Turkana Wind Power Plant and provide a reliable evacuation path for the proposed geothermal power from the North Rift geo-complex in Baringo County.

The approximately 72km 220kV Kibos–Kakamega–Musaga double circuit transmission line, including 2x45MVA 220/33kV substation at Kakamega, 2x90MVA  220/132kV substation at Musaga.

The project will extend and terminate 220kV high-voltage grid into Western Kenya for the first time and support the medium voltage network in Kisumu, Vihiga, and Kakamega counties.

The line is expected to significantly reduce voltage instability, support industrial expansion, and reduce technical power losses by reinforcing the medium voltage network through the 220/33kV substation at Kakamega and shortening the medium-voltage distribution routes.

It will also be expected to reinforce the 132kV network at Musaga through the 220/132kV substation at Musaga for improved system reliability and adequacy in the Western region, according to KETRACO.