Powering a Greener Future: Kenya Signs $311m Grid Expansion Agreement

Kenya has signed a $311 million power transmission agreement with an Africa-focused infrastructure fund and an Indian engineering firm, in a major step aimed at strengthening the country’s electricity grid and accelerating the integration of renewable energy.

The deal will support the construction of new high-voltage power transmission lines, designed to improve grid stability, reduce power losses, and enhance electricity supply across key regions. The project aligns with Kenya’s long-term energy strategy to expand access to reliable power while supporting its transition to a low-carbon economy.

Government officials say the expanded transmission network will play a critical role in unlocking the full potential of Kenya’s renewable energy resources, including geothermal, wind, and solar power, which currently account for a significant share of the country’s electricity generation.

“A strong and reliable transmission system is essential for economic growth and sustainable development,” an energy sector official said. “This investment will ensure that clean energy generated across the country can be efficiently delivered to homes, businesses, and industries.”

Beyond infrastructure development, the project is expected to deliver strong social and economic benefits. Improved power reliability is likely to support manufacturing, agribusiness, healthcare, and digital services, while also reducing outages that affect households and small businesses. During construction, the project is expected to create jobs and stimulate local economies along the transmission corridors.

From an environmental perspective, the investment strengthens Kenya’s position as a regional leader in clean energy. By easing grid congestion and enabling greater renewable energy evacuation, the project supports national climate goals and reduces reliance on fossil-fuel-based power generation.

The partnership also reflects growing international confidence in Kenya’s energy sector and infrastructure pipeline, as development finance institutions and private investors increasingly prioritise projects with strong environmental, social, and governance (ESG) outcomes.

As demand for electricity continues to rise, the $311 million transmission deal underscores Kenya’s commitment to building resilient, future-ready energy infrastructure that supports inclusive growth, climate action, and long-term sustainability.

By: Gloryann Osang.