HomeRegional NewsEast AfricaKenya: Ketraco requires $5.9bn for transmission lines extension

Kenya: Ketraco requires $5.9bn for transmission lines extension

On Monday, Ketraco stated that it is counting on private investors to mobilise $5.9 billion that will be required to build 18,300kms of high voltage power lines by 2030, reports the Daily Nation.

Energy and petroleum principal secretary, Joseph Njoroge, revealed the development during a conference that was targeted at helping Kenya to assess the best model for implementing Public Private Partnerships (PPPs) in the electricity transmission sub-sector.

Ketraco seeking a consultant

According to the media, Njoroge indicated that guidelines on (PPPs) would be drafted by the first quarter of next year to accommodate private investors.

It is reported that Ketraco is planning to hire a consultant to assess some of the pilot projects to be given priority under the financing model.

Njoroge said: “We have doubled the number of (electricity connections) in the past three years, which means we also need to escalate and fast-track investments in transmission so we can create a vibrant and robust power system.”

He disclosed that $2.9 billion was mobilised from lenders and the treasury in the last three years to finance ongoing transmission lines projects, however, he noted that the treasury is constrained.

“This means every year we need $9.8 million in the transmission projects and this will not be possible through exchequer resources so that means we look for other opportunities for mobilising this financing,” he explained.

Ketraco managing director Fernandes Barasa told the forum that the firm requires about $6.5 billion to implement the country’s massive electricity transmission plan.

Financial gap

It is reported that so far committed funds amount to about $615 million.

“A financing gap of $5.9 billion exists, 4,300km of the proposed projects have feasibility studies and the financing requirement is about $2.1 billion,” John Mativo, Ketraco’s chief manager in charge of planning and development, stated on Barasa’s behalf during a presentation.

Media reported that two approaches under the PPP model have been identified. They include the EPC (engineering, procurement and construction) plus financing where contractors bid for projects and identify a financier to meet costs.

The other model is where the PPP would attract private financing. Njoroge is reported to have said the government would seek to replicate the success of PPPs witnessed in electricity generation.




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Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.