KETRACO signs PPP agreement with PGCIL and Africa50 for transmission project in Kenya
- December 17, 2025
Kenya Electricity Transmission Company Ltd (KETRACO) recently signed a transformative public-private partnership (PPP) agreement with a consortium comprising Africa50 and Power Grid Corporation of India Ltd (PGCIL), marking a significant milestone in the expansion and modernization of Kenya’s power transmission network.
In a release, KETRACO said that the project, valued at $311 million, will be fully financed and implemented by the private sector with no public funds committed. It involves the design, construction, financing, operation, and maintenance of two key high-voltage transmission lines and associated substations, aimed at enhancing grid reliability, integrating renewable energy sources, and strengthening power supply across Western and Northern Kenya.
Initiated in 2018
This project was initiated as a Privately Initiated Proposal (PIP) in 2018 and approved for procurement through PIP in July 2021. After a thorough technical, financial and legal review, the project and its agreement received all the necessary approvals by October 16, 2025, culminating in the signing of the Project Agreements on December 15, 2025.
Project elements
The PPP project comprises two major transmission lines:
- The 400kV Lessos–Loosuk double circuit transmission line of around 180 km, with new 400/220kV substation at Lessos and 400kV switch station at Loosuk.
- The 220kV Kibos–Kakamega–Musaga double circuit transmission line of 72 km, including 2x45MVA 220/33kV substation at Kakamega, 2x90MVA 220/132kV substation at Musaga.
Together, the two lines will unlock cleaner, affordable, and more reliable power for millions of Kenyans, while directly supporting the economic growth of key counties, the KETRACO release said.
Integration RE in Kenya’s grid
This project is fully aligned with Kenya’s Least Cost Power Development Plan (LCPDP) and KETRACO’s Transmission Master Plan (TMP). It will play a central role in integrating geothermal and wind energy, particularly from the Baringo-Silali fields and the Lake Turkana Wind Power Project, reducing reliance on expensive thermal power, and lowering electricity costs for end users, the release noted.
Harnessing private participation
KETRACO plans to develop an additional 8,000 km of transmission lines over the next 20 years, requiring about $5 billion in investment (translating to $250 million annually for the next 20 years). However, constrained public funding has necessitated greater private sector participation through PPPs to bridge the financing gap and support delivery of critical transmission infrastructure, the release added.
Also read: Kenyan utility prequalifies Jyoti Structures for transmission line project
Featured photograph shows the PPP signing agreement that took place in Kenya, on December 15, 2025. R.K. Tyagi, CMD, PGCIL, is seated third from left.