Last Updated 2 weeks ago by Kenya Engineer
As Kenya continues its rapid industrial growth and urbanization, one critical area that must keep pace is the country’s power transmission infrastructure. From its humble beginnings in the 1950s to today, Kenya’s power grid has grown substantially, but the current network is straining to meet the increasing demand. To address this challenge, the Kenya Electricity Transmission Company (KETRACO) is playing a central role in expanding the national grid. Their efforts, supported by development partners and an emerging focus on public-private partnerships (PPPs), are aimed at building a reliable, efficient, and future-proof power transmission network.
A Legacy of Growth in Power Transmission
Kenya’s power transmission story began in the mid-1950s with the construction of a 132kV transmission line from Owen Falls Dam in Uganda to Juja substation, which was later extended to Rabai. By 2008, the country had a transmission network spanning 3,400 circuit kilometers (km) with a peak electricity demand of 1,044 megawatts (MW). KETRACO, established in December 2008, has since led the charge to strengthen and expand this grid to support the country’s growing energy needs.
Today, Kenya operates a high-voltage network at 132kV, 220kV, 400kV, and 500kV. The total transmission network now spans 9,105 circuit kilometers, of which KETRACO owns and operates 61.92%, or 5,638 km. KETRACO has also commissioned 42 new substations with a capacity of 6,396 MVA, significantly boosting the grid’s efficiency, quality, and reliability. Despite these strides, there is still much work to be done.
Kenya’s electricity demand has grown to a peak of 2,239MW, and the transmission infrastructure is not fully equipped to keep pace with this growing demand, especially in rapidly industrializing regions and underserved rural areas. The current transmission lines are facing constraints that lead to inefficiencies and occasional power outages, hampering industrial growth and efforts to increase access to electricity in rural regions.
The Road Ahead: Ambitious Expansion Plans
To meet the country’s future power needs, KETRACO has laid out a bold plan for the next two decades. The expansion is part of the 20-year Electricity Sector Least Cost Power Development Plan (LCPDP) and KETRACO’s Transmission Master Plan (TMP). The TMP envisions adding 9,600 circuit kilometers of transmission lines and expanding substation capacity by 15,891 MVA to meet an expected peak demand of 10,000MW by 2042.
The total cost of this expansion is estimated at USD 5.199 billion, or approximately USD 250 million annually for the next 20 years. This significant investment will not only increase the grid’s capacity but also enhance reliability and reduce transmission losses, further supporting Kenya’s transition to greener energy sources like geothermal and wind power.
A Shift to Public-Private Partnerships
Historically, KETRACO’s projects have been financed through loans secured by the National Treasury from development partners such as the World Bank, African Development Bank, JICA, AFD, and Exim Banks of China and India, among others. While this model has successfully funded the development of critical infrastructure, the turnaround time for such projects—typically 5 to 8 years—limits the speed at which new transmission lines can be constructed.
In response to this challenge, KETRACO is exploring alternative financing models, particularly public-private partnerships (PPPs). This shift aims to tap into private sector capital, technical expertise, and project management efficiency to accelerate grid expansion and ensure the country’s energy needs are met in a timely manner. By involving private investors, KETRACO hopes to bridge the financing gap and mitigate project risks while improving execution efficiency.
The move towards PPPs has been bolstered by the 2013 Energy Act and the Public-Private Partnership Act, which allow private entities to participate in the development, operation, and management of Kenya’s power transmission infrastructure. Additionally, development partners such as Power Africa, the World Bank, and the African Development Bank are providing technical assistance and capacity-building programs to help KETRACO and other institutions successfully implement PPP projects.
KETRACO’s Journey into PPPs
In the past two years, KETRACO has made significant strides in building its capacity to handle PPP projects. Through partnerships with Power Africa, the African Development Bank, and other international organizations, KETRACO has trained professionals in PPP frameworks and developed project templates for feasibility studies, proposals, and project agreements. This groundwork is essential as KETRACO moves forward with its first batch of PPP projects.
KETRACO has already identified five transmission infrastructure projects that are suitable for competitive PPP tenders. Additionally, eleven private firms have expressed interest in implementing projects through privately initiated proposals (PIPs), highlighting the growing interest from the private sector. Notable companies like Adani Energy Solutions Limited (AESL), Africa 50 & PowerGrid Limited, and EDF of France are already in various stages of project discussions with KETRACO.
Building a Reliable, Future-Proof Grid
The shift towards PPPs is not just about attracting funding—it is about building a modern, reliable, and efficient grid that can meet the needs of Kenya’s households, industries, and commercial enterprises. By leveraging private sector expertise in technology, project management, and risk mitigation, KETRACO aims to create a transmission network that can handle Kenya’s growing demand for electricity while integrating the country’s renewable energy resources.
The road ahead is ambitious, but with the right partnerships, KETRACO is poised to play a key role in powering Kenya’s future. The expansion of Kenya’s transmission infrastructure will not only support economic growth but will also strengthen the country’s role in regional power markets, promoting energy trade and cooperation across East Africa.
By embracing public-private partnerships and investing in modern transmission infrastructure, KETRACO is laying the foundation for a robust, reliable, and efficient national grid—powering Kenya’s future and integrating it into the regional energy market.