Kenya awards key transmission work to Power Grid; Indian firms eye more infra projects here

NAIROBI: Kenya has selected a joint venture of Power Grid Corp of India Limited (PGCIL) and Africa50 for a $311-million project to expand and modernise its transmission network and improve electricity supply in large parts of the East African nation. The PPP agreement is to design, construct, operate and maintain two key high-voltage transmission lines with the aim of improving power supply across western and northern Kenya.

The move comes after Kenya had in Nov 2024 cancelled a $736-million project for building & operating power transmission infra and a $1.85 billion project to modernise Nairobi’s main airport by Adani.

Kenya is looking to modernise its key infrastructure as part of its Vision 2030, including roads, railways, dams, airports and seaports. Several Indian companies are key players in Africa in these fields *and are learnt to be eyeing these projects.

Indians play a key role in the Kenyan economy. “The 60,000-80,000 Indian origin people in Kenya comprise only 0.2% of the country’s population but contribute to a significant share of the GDP here. The people-to-people ties are very strong. There are some families of PIOs living here for last six generations,” Indian high commissioner to Kenya Adarsh Swaika told TOI here.

India is Kenya’s third largest trading partner with bilateral trade of $3.5 billion. “Beyond trade figures, India is also one of Kenya’s most significant long-term investment partners. Nearly 200 Indian companies operate in Kenya across varied segments,” Swaika added. While Tata, L&T, Mahindra, Ashok Leyland are present in manufacturing space here, Airtel, Bajaj and TVS are a “household name”, the latest agreement with Power Grid has strengthened Indian presence here. “It is a matter of satisfaction that an Indian PSU has been chosen recently for a large power transmission project in Kenya.”

Given the increase in economic ties, the Export–Import Bank of India had shifted its representative office for East Africa 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. The interest of Indian companies in Kenya is only growing year by year. Since 2024, more than 1,600 Indian companies — from large corporations to SMEs, startups and first time investors — have visited Kenya to explore business opportunities here,” he said.

The number of Indian tourists to Kenya is on the rise, with last year seeing over 1.3 lakh Desi globetrotters here — making India the fifth biggest source market for foreign tourist arrivals here. Bollywood is not far behind. Last year famed Indian director S S Rajamouli shot sequences of a movie in Maasai Mara. “We are seeing a significant increase in medical tourism from Kenya to India. In 2025, we issued 10,000 medical visas. Three years back that number was about 6,000,” Swaika said.