Kenya has signed an agreement worth $311 million to develop two high voltage electricity transmission lines, as the country grapples with power supply shortages and rising demand. The finance ministry said the deal brings together Africa50, a pan African infrastructure investment fund based in Morocco, and PowerGrid Corporation of India to design, finance, build, and operate the new transmission infrastructure.
The agreement comes amid pressure on Kenya’s national grid, after President William Ruto acknowledged in November that daily power rationing was being implemented to prevent system collapse due to insufficient supply. Kenya’s current electricity generation capacity stands at about 2,316 megawatts, the highest level in five years, but officials say it remains inadequate for a population approaching 60 million.
Under the deal, the project company will oversee the full lifecycle of the transmission lines and associated substations, including construction and operation, under a 30 year concession arrangement. Media said the new power lines are expected to improve access to cleaner, more affordable, and more reliable electricity for millions of Kenyans.
While details on the allocation of investment and the scale of capacity expansion were not disclosed, the Kenya Electricity Transmission Company Limited, a state owned utility, will serve as the contracting authority. The finance ministry said the project is expected to strengthen grid stability, cut technical losses, reduce load shedding, and support the integration of renewable energy sources.
The deal follows the cancellation of an earlier plan to build new transmission lines with an Indian conglomerate, which was abandoned last year after legal action was taken against its founder in the United States.