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Elder Lister
K-List Newsroom. NAIROBI, December 29, 2025
The Kenyan government has finalized a Sh40.4 billion ($311 million) deal to upgrade the national power grid, but the agreement is drawing fire for concealing the specific electricity tariffs that will be passed on to households.
The Public-Private Partnership (PPP) deal, signed between the Kenya Electricity Transmission Company (KETRACO) and a consortium of Africa50 and PowerGrid Corporation of India, marks the country’s first major private investment in high-voltage transmission lines. However, officials have yet to disclose the "project tariff"- the rate consumers must pay to ensure the investors recoup their billions over the next 30 years.
The Infrastructure Breakdown
The deal focuses on two critical transmission lines designed to stabilize the national grid and reduce the frequent blackouts that have plagued the country:
- The 180 km 400kV Lessos-Loosuk Line: Built to evacuate renewable wind and geothermal energy from Northern Kenya.
- The 72 kilometers 220kV Kibos-Kakamega-Musaga Line: Aimed at strengthening the power supply for Western Kenya.
Under the Public-Private Partnerships Act, state agencies are required to publish comprehensive project details in national newspapers, including the financial implications for the public. Despite this, the specific impact on monthly electricity bills remains a closely guarded secret. KETRACO confirmed that a provisional tariff has been set by the Energy and Petroleum Regulatory Authority (EPRA), intended to generate approximately Sh5.6 billion in annual revenue to pay off the project costs.
Economic Impact
Investors will recover their capital through "wheeling charges" - fees levied for moving electricity across the new lines. While the government argues that modernizing the grid will eventually lower costs by reducing transmission losses, critics warn that the lack of upfront transparency makes it impossible for the public to verify if the deal is "value for money." There is also uncertainties on the impact of power tariff increases on home users who are already burdened by high power bills. The deal comes just one year after the government canceled a controversial Sh96 billion proposal with the Adani Group following public outcry over a lack of competitive bidding, and for which Kenya is expected to pay a 7.3 billion penalty. For updates on monthly billing and official rate adjustments, consumers are advised to monitor the EPRA Electricity Tariff Portal or Kenya Power’s official website.
