Kenya on Monday signed an agreement for the investment of $311 million in the construction of two high-voltage electricity transmission lines with a pan-African infrastructure fund and PowerGrid Corporation of India, the finance ministry said.
President William Ruto said in November that the country was implementing deliberate daily power rationing to prevent a collapse of the national grid due to insufficient electricity supply.
Kenya’s current generation capacity stands at approximately 2,316 megawatts, which President Ruto described as the highest in five years but still inadequate for the country’s population of nearly 60 million.
Under the power lines deal, Africa50, a Morocco-based infrastructure fund that is mainly owned by African states, will join forces with PowerGrid to design, finance, construct and operate the transmission lines and associated sub-stations, the ministry said.
The project company will "undertake the entire lifecycle of the transmission infrastructure, from construction to operation—over a 30-year concession period", Africa50 said in a statement.
The two lines would "unlock cleaner, affordable, and more reliable power for millions of Kenyans," it said.
The breakdown of investment, and the expected boost to transmission capacity, were unclear. Kenya Electricity Transmission Company Limited (KETRACO), a state firm, will be the contracting entity.
The project would "enhance system stability, reduce technical losses and load shedding, and facilitate the integration of renewable energy," the finance ministry said.
An earlier attempt by Ruto's government to build new power transmission lines with India's Adani Group was cancelled last year after its founder was indicted in the United States.
