State banks on multi-billion project for reliable power
Funding is being provided by the French government, with €48.6 million (Sh7.1 billion) coming in the form of a concessional sovereign loan from the French Development Agency (AFD).
The government is placing its hopes on the newly launched National System Control Centre (NSCC) to help tackle frequent power outages and support Kenya’s shift toward renewable energy and environmental sustainability.
According to the Kenya Electricity Transmission Company (KETRACO), the NSCC project carries a total cost of €82.7 million (approximately Sh12 billion).
Funding is being provided by the French government, with €48.6 million (Sh7.1 billion) coming in the form of a concessional sovereign loan from the French Development Agency (AFD), and an additional €34.1 million (Sh4.97 billion) through a concessional loan from the French Treasury.
The construction contract for the project has been awarded to a consortium made up of GE Vernova and Larsen & Toubro (L&T), showcasing strategic French financing combined with French expertise in Kenya’s energy sector.
During a site visit to the project location in Embakasi, Nairobi, Arnaud Suquet, the French Ambassador to Kenya, highlighted that the state-of-the-art NSCC will greatly strengthen the country’s electricity infrastructure and improve grid stability.
The facility is expected to reduce power outages and facilitate the shift from diesel generators to cleaner, more reliable energy sources, reflecting the ongoing energy transition partnership between Kenya and France.
"France is dedicated to backing essential infrastructure projects that promote sustainability, energy reliability, and economic development. This project stands as a strong symbol of the lasting cooperation between Kenya and France in energy and climate action," Suquet said.
The commercial contract came into effect on February 7, 2025, with completion planned within 36 months, by February 6, 2028.
Currently, the project timeline is being adjusted through the National Treasury to match updated schedules; the original financial agreement was signed on March 14, 2019.
Ketraco notes that this project is a key priority for Kenya, offering substantial environmental benefits by enhancing the integration of renewable energy, social improvements through better electricity access, and economic advantages by minimizing outages and reducing transmission losses.
Consumers often shoulder the cost of transmission losses, as Kenya Power and Lighting Company (KPLC) typically passes these expenses onto them, leading to increased electricity bills.
This reduces their disposable income, especially since electricity is now essential for everyday activities worldwide.
Businesses also face higher operational costs due to these losses, which, when combined with other challenges like taxation, create a more difficult operating environment.
John Mativo, Managing Director of KETRACO, stated that the project aims to transform Kenya’s electricity grid into a stronger, more efficient, and regionally connected system through the design, supply, and installation of a dual-redundant national control system.
