- There is currently a finance gap of approximately $5 billion (Sh650 billion).
- The firms expressed interest in constructing a total of 625-kilometer high-voltage power transmission lines.
Image: ENERGY MIN/X
Kenya's power transmission infrastructure needs close to $5 billion (Sh650 billion) in the next 20 years for a complete revamp and expansion, the Ministry of Energy has said.
Cabinet Secretary Energy Opiyo Wandayi said this to the stakeholders' engagement forum where he came clean on two Privately-Initiated-Proposals (PIPs) presented by Adani and Africa50.
He insisted that the two proposals were still in the review stages, adding that they would have to undergo necessary constitutional scrutiny.
"Adani and Africa50 proposals are still in the negotiation stages. Ketraco has not signed any contracts or agreements with the mentioned private companies,'' Wandayi said.
According to Wandayi, Kenya Electricity Transmission Company (Ketraco) received Expressions of Interest (EOI) from Africa50 and Adani Energy Solutions Limited in 2018 and 2023 respectively.
The firms expressed interest in constructing a total of 625-kilometer high-voltage power transmission lines (237 from Africa50 and 388 km from Adani).
He revealed that the Adani proposal to construct 206 km 400kV Gilgil-Thika-Malaa -Konza, 400/220/ 132 kV substation at Rongai and 95 km 220 kV Rongai-Keringet-Chemosit line is at the Draft Project Agreement stage.
This includes approval of projects and financial risk assessment reports prepared by the negotiating team, clearance of the draft project agreement by the Attorney General, and notification of award to the cabinet by the contracting authority.
So far, Ketraco has completed four stages of the due process (EoI, Evaluation of the PIP Proposal, Project Development Phase) for the Africa50 & PowerGrid of India proposals.
Negotiations and drafting of the Project Agreement are currently underway.
He said that the above projects are critical towards ensuring grid stability and adequacy through the 400kV backbone in addition to reinforcement of existing aged systems for improved efficiencies in power transmission and evacuation of RE-based power.
The Projects are required to be completed between 2026 and 2027 as per the Ketraco Master Plan and the Least Cost Power Development Plan.
According to Wandayi, Kenya is grappling with aging transmission infrastructure and insufficient investment in power transmission.
He said that the investments in the sector have not been at the desired levels over the last few decades.
"The consequences over time have been frequent power blackouts that have taken a toll on the economy. As such, the country needs a stable transmission infrastructure that will ensure an optimal balance between energy generation, transmission and distribution,'' he said.
The Energy boss said that the desire to invest in the sector is guided by a Transmission Master Plan which guides what needs to be done to get to the desired levels.
He said that the Ketraco Transmission Master Plan 2023-2042 outlines the need for 5,672 km of new high-voltage lines.
"The total investment required for the 20-year master plan requires expansion of the transmission network by approximately 9,605.5Km in circuit length and 15,891MVA transformation capacity."
The ministry said that investment of this nature is costly and capital incentive hence the need for other investment options away from exchequer funding and sovereign borrowing.
"Over 20 transmission projects have been supported by DFIs since 2008. Nonetheless, the country cannot continue to borrow from these institutions due to competing social needs,'' Wandayi said.
According to him, the public debt has reached an all-time high due to external borrowing, creating a significant challenge for financing transmission infrastructure. This, he said is piling more pressure on the exchequer.
Typically, the project circle for the Development Financing Partners is between five to eight years, from the development of the concept note, commissioning, project Closure to a new project.
"Thus, the next set of funding from Development Financing Partners might be around FY 2028/2029. We cannot afford to wait that long, as it would lead to serious repercussions."
He said that the involvement of private parties in the development and operation of transmission line projects as per the PPP Act cap 430 will help bridge the financial gap and ensure the timely development of the needed transmission infrastructure.
He revealed that there is currently a finance gap of approximately $5 billion (Sh650 billion).
The ministry says the investment will resolve inadequate transmission capacity to meet demand in key regions like West Kenya, the Coast, and Northern Kenya.
It will also sort insufficient evacuation capacity for renewable energy sources—particularly in Northern Kenya and geothermal complexes like Olkaria and Menengai.
The upgrade will ensure system reliability issues, especially in inter-regional connections between Mt. Kenya, Coast, West Kenya, Nairobi, and Central Rift.
"This will also heal increased technical losses due to the overloading of existing lines, and the widespread use of long 33kV lines, and limited transmission coverage in remote areas that still rely on isolated diesel plants and off-grid solar systems."