Kenya seeks private investment in electricity transmission


Christine Nganga Kenya is considering both Greenfield and brownfield transmission projects
Kenya is seeking to attract private investment into its electricity transmission sector, building on its experience of securing investment in power generation, Kenyan National Treasury and Economic Planning Department Public Private Partnership Directorate director Christine Nganga says.
Although investment in generation remains important, Nganga identifies transmission as a major area of focus, with the country preparing to take six transmission lines to market and a substantial pipeline of further projects.
“Having said that, transmission is a major area,” she says. “That’s an area we need to continue.”
While Kenya still needs additional generation capacity, Nganga says the backlog of projects is greater in transmission. The country is considering both greenfield and brownfield transmission projects.
In generation, Kenya is exploring liquefied natural gas, further geothermal power and nuclear energy. The country also has good solar resources, with several solar power projects expected to come online.
Kenya is seeking to increase its participation in the Eastern Africa Power Pool. It imports electricity from Ethiopia and Uganda, while also wheeling power to Tanzania.
Nganga says the government provides letters of support to private investors in the energy sector. These serve as political risk guarantees, helping to reassure investors and improve their access to financing.
She said investor confidence has improved as the government gains experience with these transactions. The approach is also informed by Kenya’s constrained fiscal position.
“We’re really open to partnering,” Nganga says. “At the end of the day, it’s about affordability for us.”
Kenya is therefore seeking partners with strong balance sheets, sound records in innovation and project management, and a commitment to involving local companies and creating jobs.
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