KETRACO Set to Sign Ksh.45B Deal with Africa50 for Power Grid Expansion

The Kenya Electricity Transmission Company (KETRACO) is in the final stages of securing a Ksh.45 billion public-private partnership with Africa50, a pan-African infrastructure investor, to enhance the country’s power transmission network.

This move follows KETRACO’s decision to cut ties with Adani Energy, shifting its focus to private investment to strengthen the grid and reduce technical losses amid financial constraints.

KETRACO Managing Director Dr. Eng. John Mativo highlighted Africa50’s long-standing interest, noting that the firm first expressed interest in 2018. With Kenya’s growing energy demands and limited government funding, KETRACO is prioritizing private partnerships to meet infrastructure needs.

"Africa50 will construct two critical transmission lines: a 400-kilovolt line from Lessos to Loosuk and a 220-kilovolt line from Kisumu to Musaga," Dr. Mativo stated.

The total project cost is set at Ksh.45 billion, with debt financing at an interest rate of 7.25%. KETRACO is currently negotiating Africa50’s return on equity, aiming to lower it from 16% to 14% for a more favorable deal.

Meanwhile, the company is finalizing the termination of its agreement with Adani Energy Solutions. KETRACO is also working with global financiers, including the World Bank, to restructure and repackage projects for future tenders, targeting completion before June.

This partnership marks a major step in Kenya’s efforts to modernize its power grid and ensure reliable electricity supply for its growing population and industries.