31/10/2025
Siran News Desk | 31 Oct 2025
Developers Eye Sh34bn Loans for Kenya’s First PPP-Funded Power Lines Project
Kenya’s power infrastructure is set for a major boost as developers of the country’s first public-private partnership (PPP)-funded electricity transmission lines seek loans worth Sh34 billion from three key financiers — the African Development Bank (AfDB), Trade and Development Bank (TDB), and the Dutch Entrepreneurial Bank (FMO).
The $341 million (Sh44.05 billion) project, jointly developed by Africa50 and PowerGrid Corporation of India, will see construction of two critical power lines — the 400kV Lessos–Loosuk and the 220kV Kisumu–Kibos–Kakamega–Musaga lines — under a 77:23 debt-to-equity funding model.
Consumers will repay the investment through a special tariff on power bills over a 30-year period, after which ownership transfers to Kenya. The lines are expected to enhance electricity reliability in Western Kenya and improve transmission of wind and solar energy from the north.
This milestone signals Kenya’s growing shift toward private sector participation in infrastructure, offering a model for future PPPs in the energy and utilities sector. With an estimated $4 billion financing gap in power transmission, such partnerships will be key to sustaining Kenya’s clean energy transition.