India’s Power Grid Corp Launches Kenya Unit Ahead of Planned KSh 40bn Investment

Posted on : Thursday , 30th April 2026

The Power Grid Corporation of India, which is state-owned, has formally commenced the execution phase of its transmission project in Kenya after setting up a project company in Nairobi to facilitate the development of a KSh40.2 billion electricity corridor.

 

The company has formed Mwanga Transmission Company Limited, a special purpose entity that was registered in Kenya on April 21, to execute the Kenya Independent Power Transmission Project, which is a public-private partnership with the government-operated Kenya Electricity Transmission Company (KETRACO).

 

Africa50, an infrastructure investment entity supported by African governments and the African Development Bank (AfDB), acts as the financial cornerstone of the consortium, whereas Powergrid will contribute its engineering and transmission proficiency. The initiative is part of Kenya's larger endeavor to enhance and modernize its electricity transmission system, which has faced challenges due to bottlenecks as the growth of generation capacity outpaces the development of grid infrastructure.

 

The public-private partnership framework enables the government, via KETRACO, to maintain control over the national grid while delegating financing and construction responsibilities to a combination of development finance and international technical operators.

 

The establishment of the special purpose vehicle comes after the execution of a project agreement in late 2025 involving KETRACO, Africa50, and Powergrid. This agreement outlined the structure for the investment in the transmission line, aimed at enhancing grid stability and increasing power evacuation capacity in critical demand areas.

 

The horizon features transmission lines, notably the 180-kilometre 400kV Lessos–Loosuk double-circuit line, which will provide an alternative evacuation route for up to 300 megawatts from the Lake Turkana Wind Power plant and aid in geothermal development in the North Rift. In addition, the second line is the 72-kilometre 220kV Kibos–Kakamega–Musaga line, which extends high-voltage transmission into Western Kenya, stabilizing the supply and supporting the increasing industrial demand across the region.

 

According to the outlined structure, Mwanga Transmission Company will act as a separate entity focused exclusively on financing, constructing, and operating the designated transmission assets. This SPV model effectively isolates project risks from the parent institutions, permitting lenders to assess cash flows at the project level rather than depending on sovereign balance sheets.

 

For Powergrid, the Kenyan project signifies a segment of a larger strategy to broaden its operations beyond its domestic transmission network into emerging markets where grid expansion is gaining momentum. The company has increasingly adopted subsidiary models to take part in global public-private partnerships.