Monday 5th January 2026
By inAfrika Newsroom
Kenya’s Kenya power lines PPP drive has moved into delivery mode, after the government signed a $311 million agreement to build two high-voltage transmission lines with Africa50 and PowerGrid Corporation of India. The deal aims to expand capacity and stabilise the grid as demand rises.
The finance ministry said the partners will design, finance, build and operate the lines and related substations through a project company. In addition, Africa50 said the concession runs for 30 years and covers the full asset lifecycle from construction to operations.
Kenya has increasingly leaned on public-private partnerships as debt pressures tighten fiscal space. However, the government says the approach helps keep priority infrastructure moving while managing upfront public borrowing.
The power lines push follows repeated grid stress events and nationwide blackouts linked to overloads and technical trips. Therefore, officials framed the transmission build-out as a reliability measure that should also reduce technical losses and ease load shedding. Moreover, the ministry said the expansion will help integrate more renewable energy into the system.
At the same time, Kenya’s recent history has made large infrastructure contracts politically sensitive. An earlier plan involving India’s Adani Group was cancelled after its founder was indicted in the United States. Consequently, stakeholders will watch contract transparency and contingent liabilities closely.
Financial close, route confirmation and construction timelines are expected to follow, although the public documents did not spell out the capacity increase. Meanwhile, KETRACO will serve as the contracting entity for implementation coordination.
Transmission is the backbone of affordable electricity. So, if Kenya delivers these lines on time, it could cut outages, unlock more renewable generation, and support industrial growth without repeated grid shocks.
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