India's Power Grid Corp Secures Major $311 Million Transmission Project in Kenya
In a significant development for East African infrastructure, Kenya has officially awarded a $311 million project to a joint venture comprising India's state-owned Power Grid Corporation of India Limited (PGCIL) and the pan-African investment platform Africa50. This ambitious initiative is focused on expanding and modernizing Kenya's transmission network to enhance electricity supply across large swathes of the nation.
Project Details and Strategic Importance
The Public-Private Partnership (PPP) agreement mandates the design, construction, operation, and maintenance of two critical high-voltage transmission lines. These lines are strategically aimed at improving power reliability and access in western and northern Kenya, regions that have historically faced supply challenges. This decision follows Kenya's cancellation of two other major infrastructure projects in November 2024: a $736 million power transmission infrastructure project and a $1.85 billion airport modernization plan in Nairobi, which was previously associated with the Adani Group.
This transmission project is a cornerstone of Kenya's Vision 2030, a comprehensive national development blueprint that prioritizes the modernization of key infrastructure sectors including roads, railways, dams, airports, and seaports. Indian companies, with their extensive expertise in these fields, are increasingly positioning themselves as key players in Africa's infrastructure landscape and are actively exploring these burgeoning opportunities.
Deepening India-Kenya Economic and Cultural Ties
The project underscores the robust and multifaceted relationship between India and Kenya. Indian High Commissioner to Kenya, Adarsh Swaika, highlighted the profound people-to-people connections, noting that the 60,000 to 80,000 Indian-origin individuals in Kenya, while constituting just 0.2% of the population, contribute a significant share to the country's GDP. "Some families of Persons of Indian Origin have been living here for six generations," Swaika remarked.
India stands as Kenya's third-largest trading partner, with bilateral trade valued at $3.5 billion. Beyond commerce, India is a pivotal long-term investment partner, with nearly 200 Indian companies operating across diverse sectors in Kenya. While industrial giants like Tata, Larsen & Toubro, Mahindra, and Ashok Leyland have a strong manufacturing presence, brands such as Airtel, Bajaj, and TVS have become household names. The latest agreement with Power Grid Corp further solidifies this deep-rooted Indian footprint.
"It is a matter of satisfaction that an Indian Public Sector Undertaking has been chosen recently for a large power transmission project in Kenya," Swaika stated, reflecting on the growing economic synergy.
Expanding Commercial and Soft Power Influence
Reflecting the upward trajectory of economic ties, the Export-Import Bank of India relocated its East Africa representative office from Addis Ababa to Nairobi in 2024. "This move reflects India's confidence in Kenya as a regional financial and commercial hub and underscores Nairobi's role as a gateway for Indian trade, investment, and development financing across East Africa," Swaika explained.
The interest from Indian businesses is surging. Since 2024, over 1,600 Indian companies—spanning large corporations, SMEs, startups, and first-time investors—have visited Kenya to explore commercial prospects. Cultural and tourism links are also strengthening. India has become the fifth-largest source market for foreign tourists in Kenya, with over 130,000 Indian visitors last year. Bollywood's influence is growing, exemplified by famed director S.S. Rajamouli filming sequences in the Maasai Mara last year.
Furthermore, medical tourism from Kenya to India is witnessing a significant uptick. In 2025, India issued 10,000 medical visas to Kenyan nationals, a substantial increase from approximately 6,000 just three years prior, highlighting another dimension of this deepening bilateral partnership.
