Plans to upgrade Kenya’s power transmission network through a Sh31.7 billion Public Private Partnership could face delays after the government failed to hire a consultant to oversee investor selection.
The tender process collapsed because the bids submitted were above the allocated budget, forcing officials to start a new procurement that could take several months.
The PPP Directorate of the National Treasury confirmed that the evaluation of the consultancy bids was complete, but none met the financial requirements.
“Evaluation of the bids was completed. The tender was unresponsive. It shall be re-advertised,” the agency said. “The tender was cancelled since the lowest quoted bidder was higher than what was in the budget.”
The project includes four high-voltage lines: the Kwale-Shimoni 220 kilovolt, Kipevu-Mbaraki 132 kilovolt, Kiambere-Maua-Isiolo 220 kilovolt, and Meru-Maua 132 kilovolt lines.
These lines are expected to strengthen electricity supply in Kwale, Mombasa, Meru, and Isiolo, regions currently affected by an overloaded and outdated transmission network.
Kenya Electricity Transmission Company, the State firm responsible for building power lines, has been under pressure to improve the network.
Under the PPP model, private investors will fund, construct, operate, and recover costs through electricity tariffs before transferring the lines to Ketraco.
Rising energy demand has intensified the need for new infrastructure.
Last year, national electricity consumption grew by 10 percent to 10,820.53 gigawatt-hours, with six peak demand events recorded, showing the strain on existing lines.
If completed, the four lines will mark the second PPP-funded transmission project in Kenya. The first involves Africa50 and PowerGrid Corporation of India, which are constructing the 400 kilovolt Lessos-Lossuk line and the 220 kilovolt Kisumu-Kibos-Kakamega-Musaga line.
The financial closure for that $311 million (Sh40.1 billion) project was reached last month. Ketraco targets to have the PPP-funded lines operational by 2030, providing alternative routes for power evacuation and expanding the country’s capacity to transmit electricity from local and regional sources.
