Kenya Awards Key Transmission Work to Power Grid

Why It Matters

The project strengthens Kenya’s grid reliability and supports its economic growth targets, while deepening Indo‑Kenyan strategic and investment ties in East Africa’s energy sector.

Key Takeaways

• $311M JV awarded to Power Grid, Africa50 for transmission lines.
• Project covers two high‑voltage lines in western, northern Kenya.
• Replaces cancelled $736M transmission project, aligns with Vision 2030.
• Strengthens India’s role as Kenya’s third‑largest trade partner.
• Enhances regional grid stability, attracting further foreign investment.

Pulse Analysis

Kenya’s power sector has long grappled with transmission bottlenecks that limit the reach of new generation capacity. Vision 2030 envisions a modernized grid capable of supporting rapid industrialisation and rural electrification, yet previous attempts, including a $736 million project cancelled in 2024, fell short. By turning to a public‑private partnership, the government aims to accelerate infrastructure delivery, reduce fiscal exposure, and ensure long‑term operational expertise. The new contract reflects a pragmatic shift toward leveraging external capital and technical know‑how to meet urgent energy needs.

The joint venture between Power Grid Corp of India and Africa50 brings together a seasoned Indian utility and a pan‑African infrastructure fund. Their mandate covers the engineering, procurement, construction, and subsequent operation and maintenance of two high‑voltage corridors linking Kenya’s western and northern regions. Expected to boost transmission capacity by several hundred megawatts, the lines will alleviate congestion, lower losses, and enable smoother integration of renewable projects. Financing blends equity from Africa50 with debt from multilateral lenders, illustrating a growing appetite for blended finance models in African energy projects.

Beyond the immediate grid benefits, the award signals a deepening of Indo‑Kenyan economic relations. India, now Kenya’s third‑largest trading partner, leverages this success to showcase its state‑owned enterprises as reliable partners for large‑scale infrastructure. The move also positions Nairobi as a regional hub for Indian investment, especially after EXIM Bank relocated its East Africa office there. As East Africa pursues greater energy inter‑connectivity, the Kenya‑Power Grid deal could serve as a template for future cross‑border transmission initiatives, attracting further foreign direct investment and reinforcing the continent’s shift toward sustainable power systems.

Kenya awards key transmission work to Power Grid

By Saurabh Sinha, TIMESOFINDIA.COM · Published on Feb 18, 2026 at 04:49 PM IST

Kenya has awarded a $311 million power transmission project to a joint venture of India's Power Grid Corp and Africa50.

Kenya has selected a joint venture of Power Grid Corp of India Limited (PGCIL) and Africa50 for a $311‑million project to expand and modernise its transmission network and improve electricity supply in large parts of the East African nation. The PPP agreement is to design, construct, operate and maintain two key high‑voltage transmission lines with the aim of improving power supply across western and northern Kenya.

The move comes after Kenya had in Nov 2024 cancelled a $736‑million project for building & operating power transmission infrastructure and a $1.85 billion project to modernise Nairobi’s main airport by Adani.

Kenya is looking to modernise its key infrastructure as part of its Vision 2030, including roads, railways, dams, airports and seaports. Several Indian companies are key players in Africa in these fields and are keen to pursue these projects.

Indians play a key role in the Kenyan economy. “The 60,000‑80,000 Indian‑origin people in Kenya comprise only 0.2 % of the country’s population but contribute to a significant share of the GDP here. The people‑to‑people ties are very strong. There are some families of PIOs living here for the last six generations,” Indian High Commissioner to Kenya Adarsh Swaika told TOI.

India is Kenya’s third‑largest trading partner with bilateral trade of $3.5 billion. “Beyond trade figures, India is also one of Kenya’s most significant long‑term investment partners. Nearly 200 Indian companies operate in Kenya across varied segments,” Swaika added. While Tata, L&T, Mahindra, Ashok Leyland are present in the manufacturing space, Airtel, Bajaj and TVS are a “household name”. The latest agreement with Power Grid has strengthened Indian presence. “It is a matter of satisfaction that an Indian PSU has been chosen recently for a large power transmission project in Kenya.”

Given the increase in economic ties, the Export‑Import Bank of India shifted its representative office for East Africa from Addis Ababa to Nairobi in 2024. “This move reflects India’s confidence in Kenya as a regional financial and commercial hub and underscores Nairobi’s role as a gateway for Indian trade, investment, and development financing across East Africa. The interest of Indian companies in Kenya is only growing year by year. Since 2024, more than 1,600 Indian companies — from large corporations to SMEs, startups and first‑time investors — have visited Kenya to explore business opportunities here,” he said.

The number of Indian tourists to Kenya is on the rise, with last year seeing over 130,000 Indian visitors — making India the fifth‑largest source market for foreign tourist arrivals. Bollywood is not far behind; last year famed Indian director S. S. Rajamouli shot sequences of a movie in Maasai Mara. “We are seeing a significant increase in medical tourism from Kenya to India. In 2025, we issued 10,000 medical visas. Three years back that number was about 6,000,” Swaika said.