Lilian Nyiva
The Kenya Electricity Transmission Company (KETRACO) has announced a new Public-Private Partnership (PPP) project valued at approximately Ksh65 billion, marking a major step in the government's efforts to expand the country's electricity transmission infrastructure following the cancellation of the Adani Energy Solutions deal.
The new initiative is part of the government's strategy to attract private investment into critical infrastructure while easing pressure on public finances. It comes after the termination of the Adani transmission project in November 2024, which had been cancelled over integrity concerns surrounding the Indian conglomerate.
Private Investors to Finance the Project
According to government plans, the project will be implemented under the Public-Private Partnership framework, allowing private investors to finance, develop, and maintain key electricity transmission infrastructure before transferring it back to KETRACO after the concession period.
The PPP model is intended to accelerate the construction of high-voltage transmission lines without increasing Kenya's public debt burden.
Replacing the Cancelled Adani Project
The new project follows the cancellation of the Ksh96 billion Adani Energy Solutions agreement, which had proposed financing and operating several electricity transmission lines across Kenya. The agreement was terminated after allegations involving the Adani Group prompted the Kenyan government to halt the project.
Following the cancellation, the government began seeking alternative private investors to ensure that planned transmission projects could proceed without significant delays.
Strengthening Kenya's Power Grid
The planned investment is expected to improve the reliability of Kenya's electricity network by expanding high-voltage transmission capacity, reducing power losses, and supporting the integration of renewable energy sources such as wind and geothermal power into the national grid. The project is also expected to enhance electricity supply to homes, industries, and businesses in various parts of the country.
Supporting Economic Growth
Officials say the investment will contribute to Kenya's long-term energy security by modernising transmission infrastructure and creating opportunities for economic growth. Improved transmission capacity is expected to support industrial development, attract investment, and enhance the reliability of electricity supply nationwide.
The Ksh65 billion PPP project forms part of the government's broader infrastructure financing strategy, which seeks to leverage private capital for major development projects while limiting additional public borrowing. As implementation progresses, KETRACO is expected to work with its private partners to deliver the transmission lines and associated substations that will strengthen Kenya's national power grid.
