Kenya’s $311.47 million privately financed transmission project has entered a new procurement stage, with an international search for an independent expert to oversee two high-voltage corridors designed to strengthen the grid and support renewable electricity integration.
The $311.47 million Kenya transmission project has entered a new procurement stage. The privately financed programme covers two high-voltage corridors designed to strengthen the grid and support renewable electricity integration.
The project comes amid wider questions about Kenya’s electricity costs and the infrastructure needed to support a reliable power supply. Read more about Kenya’s electricity tariffs and fuel and foreign-exchange charges.
Mwanga Transmission Company Limited, established by Africa50 and India’s Power Grid Corporation of India Limited (POWERGRID), launched an international competitive selection process on 6 October. The company is seeking an independent technical expert for an assignment lasting at least 48 months.
According to Africa50’s procurement announcement, submissions are due on 29 October 2026. Africa50 describes the role as an “Independent Engineer”. The official project procurement website calls it an “Independent Expert”. When checked on 23 October, the procurement page still listed 29 October as the deadline. The page reviewed showed no revised deadline.
Two transmission corridors
The programme covers two transmission projects that Mwanga is developing in partnership with the Kenya Electricity Transmission Company (KETRACO).
The first project is a 180 km, 400 kV double-circuit line linking Lessos and Loosuk. KETRACO’s project disclosure says the line will provide an alternative route for transmitting renewable electricity from northern Kenya. The line is designed to accommodate up to 300 MW of wind power from the Lake Turkana Wind Power project. It will also support planned geothermal generation from the Baringo–Paka–Silali fields.
The second project is an approximately 72 km, 220 kV double-circuit line connecting Kibos, Kakamega and Musaga. It includes new substations at Kakamega and Musaga, a 220 kV bay extension at Kibos and a 132 kV interconnection at Musaga.
KETRACO says the project will strengthen transmission capacity and improve grid reliability in western Kenya, including Kisumu, Vihiga and Kakamega counties.
The corridor’s name varies across official sources. KETRACO’s project disclosure identifies it as Kibos–Kakamega–Musaga, while Africa50’s procurement announcement uses Kisumu–Kakamega–Musaga.
Kenya transmission project: private capital, long-term payments
The Kenya transmission project’s financing structure is a significant feature of the deal. KETRACO’s disclosure puts total capital expenditure at $311.47 million, comprising $214.02 million for the 400 kV project and $97.45 million for the 220 kV project. It states that the private partner is responsible for sourcing and investing the project capital, with no Government of Kenya public funds committed to the initial investment.
The parties signed the project agreement on 15 December 2025. Under the 30-year concession, the private partner will finance, design, build, operate and maintain the infrastructure. At the end of the concession, the assets will return to KETRACO under the agreement.
Private financing of the initial investment does not, however, mean the project carries no long-term cost for the public electricity system. KETRACO will make performance-linked availability payments to the project company during the concession.
KETRACO’s disclosure puts the levelized annual revenue requirement for both transmission lines at $43.12 million, net of taxes, during the concession period. The project tariff is designed to cover capital recovery on debt and equity, operating and maintenance expenditure, financing and insurance costs, taxes and other statutory charges.
The $43.12 million figure is a levelized revenue requirement, not a published year-by-year payment schedule. The available disclosure does not provide sufficient detail to calculate the project’s full long-term payment profile from that figure alone.
Payments under the Kenya transmission project are linked to operational performance. The project company must maintain at least 98% monthly line availability to qualify for the full availability-based payment, with lower availability attracting penalties under the project agreement.
KETRACO’s disclosure also identifies a proposed government letter of support setting out procedures for certain politically triggered termination scenarios, including asset transfer and compensation arrangements. The published material does not quantify the potential financial exposure associated with these provisions.
Procurement marks an implementation milestone
Under the project agreement, KETRACO and the project company will jointly appoint an independent expert to oversee aspects of implementation. During construction, the expert will assess compliance with specified output requirements before the project receives a completion certificate.
The agreement calls for project commencement within 12 months of its signature and completion within 30 months after its effective date. However, these dates represent contractual timelines. The procurement announcement does not confirm that the project has reached financial close or started physical construction.
The current procurement therefore concerns independent technical oversight, not construction of the transmission lines. Interested engineering firms can consult the official project procurement website for eligibility criteria, submission requirements and subsequent clarifications or amendments.
The two corridors address different constraints in Kenya’s electricity network. The northern project will support wind and planned geothermal generation, while the western project will strengthen transmission capacity and reliability.
