BUSINESS

KETRACO Unveils Ksh65B Electricity Transmission Projects for Public Review

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A KETRACO subtstation
A KETRACO subtstation
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Kenya’s electricity transmission network could soon receive a major boost after private investors tabled proposals worth up to Sh65 billion to build new high-voltage power infrastructure across several counties.

The Kenya Electricity Transmission Company (KETRACO) has published the privately initiated proposals under the Public Private Partnership (PPP) framework, marking the beginning of a competitive review process before any project is approved.

The proposals have been submitted by a consortium comprising Pabari Investment Limited, ENCOMM Power Rental Solutions Limited and AEE Power Ventures S.L. They are part of KETRACO’s long-term Transmission Master Plan for 2025 to 2044, which seeks to modernise Kenya’s electricity transmission network and keep up with growing demand for power.

If they receive the green light, the projects will see the construction of new high voltage transmission lines and substations in Mutomo, Voi, Taveta, Maralal and Kilgoris. The infrastructure is expected to strengthen the national grid, reduce congestion on existing transmission lines and make it easier to deliver electricity from power plants to homes, businesses and industries.

Kenya has significantly increased electricity generation over the past decade, particularly from renewable sources such as geothermal, wind and solar energy. However, experts have repeatedly pointed out that generating electricity is only part of the equation. A reliable transmission network is equally important because it moves electricity from power stations to distribution companies before it reaches consumers. Without enough transmission capacity, some areas experience delays in accessing power while others face losses caused by overloaded lines.

KETRACO said the publication of the proposals is only one stage in a much longer process and should not be interpreted as approval.

The corporation noted that every proposal must undergo technical, financial and legal assessments before any investment decision is made. The projects will also be subjected to stakeholder consultations, negotiations and approvals required under the Public Private Partnership Act, 2021.

The utility stated that publication of the proposals “does not constitute approval of the projects,” emphasizing that all legal procedures must first be completed.

The four projects are expected to be implemented between the 2028/29 and 2030/31 financial years if they successfully pass the evaluation process.

In line with the PPP law, KETRACO has also invited other investors with similar capabilities to submit competing expressions of interest within 21 days. The move is intended to encourage competition, improve value for money and ensure the government selects the most suitable proposal rather than automatically accepting the original submission.

The increasing use of Public Private Partnerships reflects Kenya’s efforts to finance large infrastructure projects without placing the full burden on taxpayers or increasing public debt. Under this model, private firms provide financing and technical expertise while the government retains oversight through contractual agreements and regulatory approvals.

The proposed investment comes at a time when electricity demand is expected to continue rising as more households are connected to the national grid, industries expand, and the country pushes for greater use of electric mobility and clean energy technologies. A stronger transmission network will also help evacuate electricity from renewable energy plants located far from major towns and industrial centres.

KETRACO has been at the centre of several strategic transmission projects designed to improve the country’s energy security and support regional power trade through interconnection projects with neighbouring countries. The latest proposals represent another attempt to strengthen the backbone of Kenya’s electricity system while attracting private capital into critical infrastructure development.

The projects will now undergo the statutory review process before the government decides whether they can move to the implementation stage.

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