Kenya needs reliable electricity—no one disputes that. But as we push to expand our power infrastructure, we must ask: Are we getting a fair deal, or are we locking ourselves into an expensive arrangement that benefits foreign companies more than Kenyans? Are we developing local capacity?
The Africa50 transmission project, backed by the African Development Bank and India’s PowerGrid Corporation, plans to build two major power lines: a 177-kilometre line from Lessos to Loosuk and a 64-kilometre line from Kisumu to Musaga. On paper, this sounds like progress. But the details should worry every Kenyan taxpayer
The project’s cost is shocking—Sh41.6 billion, with yearly repayments of Sh7.8 billion for 30 years. Yet industry experts estimate the actual construction cost should be around Sh16.8 billion. Why the huge markup? Even worse, up to 90 percent of the payments will bypass Kenya entirely—going directly to foreign suppliers and contractors.
Only 10 percent remains in our economy. But Kenyan consumers will bear 100 percent of the repayment burden through higher electricity bills. The repayment will put a burden on forex earnings and as the 90 percent will be remitted in US dollars.
This isn’t just bad economics—it’s a missed opportunity. Countries such as Ethiopia and Tanzania have built major power projects using local expertise and public funding. Kenya has skilled engineers and contractors capable of handling such work.
Supporters argue that we lack foreign-led Public Private Partnerships (PPPs) financing and that project turnaround is faster. But look at India, Mexico, or Brazil—they structure PPPs to keep economic benefits at home. Why can’t Kenya do the same? In PPPs, there is no technology transfer and will have an effect on employment opportunities in Kenya and effectively will be exporting Jobs.
Transmission and distribution projects are simpler than power generation. Kenya’s energy sector already has the technical know-how. There are several Kenyan-owned companies who have delivered complex power projects across East Africa. We don’t need outsiders to teach us—we need fair opportunities to grow our own industry.
In my experience, European companies and KPLC have given better opportunities to local EPC (Turnkey) Contractors in Kenya. This is something Ketraco, KenGen and most government have failed to do.
Then there’s the question of demand. Western Kenya’s current power usage doesn’t justify such a massive investment. Kakamega’s substation, for example, peaks at just 4.7MW. Building a 200MVA line now is like buying a cargo ship to cross a river—expensive and unnecessary. A phased, locally managed upgrade would make more sense.
Kenya doesn’t need this deal as it stands. The costs are inflated, the benefits skewed, and the risks long-term. If we want reliable power, let’s invest in our own engineers, our own companies, and our own economy. Otherwise, we’re not building a brighter future—just a heavier debt burden.
Rodgers Mudegu Adai is a power systems engineer and the founder of ARM Engineering, a turnkey construction company operating in the Kenyan energy sector.
