Kenya and France Launch Sh12 Billion Power Grid Modernization Project

NAIROBI – In a significant move to modernize Kenya’s power infrastructure and support its transition to renewable energy, the Government of Kenya and the French Development Agency (AFD) have joined forces to launch the National System Control Centre (NSCC) project. Valued at Sh12 billion (approximately €94 million), the NSCC is set to become the nerve center of Kenya’s electricity transmission grid, enhancing grid stability, reducing outages, and enabling faster integration of clean energy sources. Construction is being led by a consortium of GE Vernova and Larsen & Toubro (L&T), bringing together cutting-edge technology and engineering expertise. This initiative underscores the deepening bilateral collaboration between Kenya and France, as well as a broader European Union (EU) strategy to bolster regional power integration across Eastern and Southern Africa.

Background: Kenya’s Growing Energy Needs

Over the past decade, Kenya has experienced rapid economic growth, urbanization, and population increases. By 2025, the country’s electricity demand has surged past 3,000 megawatts (MW), driven by sectors such as manufacturing, technology, and urban middle-class consumption. Despite this demand, frequent outages and transmission bottlenecks have hampered both businesses and households. Rural areas, in particular, face unreliable supply, even though Kenya has made significant strides in rural electrification—raising national access to roughly 80% by end-2024. According to the Kenya National Bureau of Statistics (KNBS), electricity outages cost the Kenyan economy an estimated Sh45 billion annually, due to lost productivity, spoilage in cold chains, and increased reliance on diesel generators.

Adding further complexity is Kenya’s ambitious push toward renewable energy. Already, over 90% of the country’s electricity generation comes from renewables—primarily geothermal (40%), hydropower (30%), wind (12%), and increasingly, solar (8%). However, integrating intermittent sources like wind and solar onto a grid initially designed for baseload hydro and geothermal requires robust control and balancing mechanisms. This is precisely the gap the NSCC project aims to fill: a modern control center capable of real-time monitoring, forecasting, and dispatch of diverse power sources.

The NSCC Project: Scope and Objectives

Project Overview

The National System Control Centre (NSCC) is envisioned as the central command hub for Kenya’s transmission network. Located in Embakasi, Nairobi, the NSCC will:

• Monitor and Control: Provide real-time visibility of power flows across over 10,000 kilometers of high-voltage transmission lines and 250 transmission substations managed by the Kenya Electricity Transmission Company Limited (KETRACO).
  
• Stabilize Grid Operations: Use advanced Supervisory Control and Data Acquisition (SCADA) systems, energy management software, and automatic generation control to maintain grid frequency and voltage within optimal ranges.
  
• Integrate Renewables: Facilitate the dispatch and balancing of renewable sources—such as the Lake Turkana Wind Power Project (310 MW) and the Olkaria Geothermal Complex (up to 1,200 MW)—reducing curtailment and ensuring stable supply.
  
• Enable Cross-Border Trade: Act as a control point for power interchange with neighboring countries, including Uganda, Tanzania, and Ethiopia, through regional power pools (Eastern Africa Power Pool (EAPP) and Southern African Power Pool (SAPP)).
  

Key Objectives

1. Reduce Outages and Transmission Losses
   By centralizing control and automating load management, the NSCC is expected to lower Kenya’s average transmission losses—currently about 6.5%—to under 4%. This will translate into lower costs for consumers and reduced system stress.
   
2. Support 24/7 Renewable Integration
   With fluctuating wind and solar inputs, accurate forecasting and dispatch are critical. The NSCC’s real-time metering and data analytics will enable KETRACO and Kenya Power and Lighting Company (KPLC) to better match supply and demand, reducing reliance on expensive thermal backup plants.
   
3. Facilitate Grid Expansion
   As Kenya builds new lines—such as the Kisumu-Kakamega-Busia corridor (200 kV) and the Moyale-Lokichar project (400 kV)—the NSCC will serve as the orchestration center, ensuring that new assets are commissioned smoothly and operating at optimal capacity.
   
4. Strengthen Regional Integration
   By linking with Uganda’s Bujagali-Gulu and Ethiopia’s Moyale interconnectors, Kenya can export surplus power during off-peak periods—leveraging its abundant geothermal and hydropower—while importing during drought or low flow years, creating win-win dynamics across borders.
   

Financing and French Support

Concessional Loans from AFD and French Treasury

The NSCC project is co-financed by two primary sources:

1. French Development Agency (AFD)
   
   • AFD has extended a concessional loan of €70 million (approximately Sh8.9 billion) for the NSCC.
     
   • AFD’s loan features an interest rate of 0.75% per annum, with a 20-year maturity and a 5-year grace period.
     
   • AFD’s involvement is part of its broader mandate to support climate resilience and green growth in developing countries.
     
2. French Treasury Concessional Loan
   
   • The French Treasury adds an additional €24 million (around Sh3.1 billion) to the financing package, also at below-market interest rates.
     
   • Together, these loans ensure that Kenya accesses best-in-class technology without compromising fiscal stability.
     

“France is proud to support critical infrastructure that boosts sustainability and economic growth. This project strengthens Kenya’s power reliability and is a clear symbol of our enduring energy and climate partnership,” said H.E. Arnaud Suquet, French Ambassador to Kenya. Suquet reiterated France’s commitment to Africa, noting that this project dovetails with broader France–Kenya bilateral agreements on climate action and development cooperation.

Effective Utilization of Funds

Under the loan agreements, KETRACO acts as the implementing agency, responsible for procurement, contract management, and financial reporting. To ensure transparency and value for money:

• Technical Audits: Independent engineers appointed by AFD and the French Treasury will periodically review progress, quality of materials, and compliance with environmental and social safeguards.
  
• Local Content Requirements: At least 30% of project labor and 20% of contracting opportunities are earmarked for Kenyan firms and local skilled workers, aligning with Kenya’s Vision 2030 goals to boost domestic participation in large infrastructure projects.
  
• Environmental and Social Impact Assessments (ESIAs): Conducted in line with AFD’s standards, ensuring that land acquisition, resettlement (if any), and ecological considerations (such as preserving green corridors) are managed responsibly.
  

Consortium Partners: GE Vernova and Larsen & Toubro

GE Vernova

GE Vernova (a division of General Electric) is a global leader in power grid technologies, including:

• SCADA Systems: Software platforms that collect real-time data from remote substations, enabling grid operators to monitor voltage levels, frequency, and load flows.
  
• Advanced Energy Management Systems (EMS): Tools to optimize dispatch based on forecasted demand and generation availability.
  
• Protection Relays and Circuit Breakers: High-speed protection devices to isolate faults and prevent cascading outages.
  

GE Vernova brings over 60 years of experience to Kenya, having implemented grid modernization projects in North America, Europe, and parts of Asia. Their local office in Nairobi has already supplied digital meters and grid automation equipment to KPLC.

Larsen & Toubro (L&T)

Larsen & Toubro, headquartered in Mumbai, India (L&T Official Site), is one of the world’s largest engineering, procurement, and construction (EPC) contractors. For the NSCC, L&T will handle:

• Civil Works: Construction of the NSCC building, which includes a 50,000-square-foot control hall, command center, communication rooms, and supporting offices. The structure is designed to withstand seismic events and extreme weather.
  
• High-Voltage Integration: L&T will install 132 kV and 400 kV switchgear, fiber-optic communication links to substations, and redundancy systems to ensure 99.99% uptime.
  
• Testing and Commissioning: Specialized teams will conduct pre-commissioning tests, relay settings configuration, and final system acceptance trials before handover.
  

Together, GE Vernova and L&T form a synergy that covers both the hardware (civil and electrical infrastructure) and software (SCADA/EMS) dimensions, ensuring the NSCC is delivered on time and with robust operational capabilities.

Technical Features of the NSCC

SCADA & EMS Integration

At the core of the NSCC is an integrated SCADA (Supervisory Control and Data Acquisition) system coupled with an Energy Management System (EMS). These platforms will:

• Collect Data: Aggregate measurements from over 2,500 remote terminal units (RTUs) installed at transmission substations across the country.
  
• Forecast Demand: Use historical load profiles, weather data, and renewable generation forecasts to predict hourly demand, optimizing dispatch.
  
• Real-Time Dispatch: Automatically issue set-points to generating units (especially thermal backup plants) to balance the grid when renewables dip unexpectedly.
  
• Event Analysis: Log disturbances (faults, line trips) for post-event analysis, aiding in root-cause investigations and system reliability improvements.
  

24/7 Control Room

The NSCC building will feature a 24/7 state-of-the-art control room, including:

• Video Wall: A 6-meter by 3-meter display showing one-line diagrams of the entire grid, with color-coded alerts for outages, overloads, or generation shortfalls.
  
• Operator Consoles: Seating for 30 grid operators and engineers, each equipped with dual high-definition monitors, ergonomic controls, and voice communication headsets linked to field engineers.
  
• Redundant Power Supply: Uninterruptible Power Supply (UPS) systems and backup diesel generators ensure continuous operation even during grid blackouts.
  
• Cybersecurity: Next-generation firewalls, intrusion detection systems, and strict access control policies protect against cyber threats—a growing concern as African grids become more digitized.
  

Data Analytics & AI Integration

Recognizing the importance of predictive maintenance and grid optimization, the NSCC will incorporate:

• Machine Learning Algorithms: To identify patterns in transformer failures, forecast equipment health, and schedule maintenance proactively—minimizing unscheduled outages.
  
• Renewable Integration Tools: AI modules that analyze weather forecasts (solar irradiance, wind speed) and adjust dispatch plans in advance, reducing reliance on spinning reserves.
  
• Mobile Reporting: Field engineers can use mobile apps linked to the NSCC database to report equipment conditions, upload images of damage, and receive instructions for urgent repairs, all in near real-time.
  

AFD RETNET Programme and EU Grant

AFD RETNET Programme (€94 Million)

The NSCC is part of the larger AFD RETNET (Réseau électrique national) programme, which has a total budget of €94 million and aims to modernize Kenya’s entire transmission network. Key components include:

1. Digital Substation in Makindu
   
   • The Makindu-Mombasa 220 kV substation will be upgraded with digital relays, remote terminal units, and fiber-optic communication, enhancing reliability along the Mombasa corridor—a critical route serving the port city and tourist regions.
     
   • This digital substation will serve as a blueprint for future upgrades in Kisumu, Eldoret, and Nakuru, enabling standardized deployment of digital technologies.
     
2. Technical Assistance & Sectoral Studies
   
   • AFD is funding in-depth studies on grid loss reduction strategies, renewable integration potential, and long-term capacity expansion planning.
     
   • International consultants from RTE (France’s transmission system operator) and CEA (Centre for Energy Advancement) are conducting training workshops for KETRACO engineers, focusing on best practices in grid operations.
     
3. Completion of Nairobi Ring Infrastructure
   
   • Nairobi’s inner city currently experiences congested lines, leading to frequent local outages. The RETNET programme finances the completion of the 220 kV Nairobi Ring, a loop line connecting Gitaru, Mombasa Road, and Syokimau substations, effectively creating a redundant pathway for power to flow in case of a line fault.
     
   • This tri-loop configuration will cut urban voltage dips by 30% and reduce line loading disparities.
     

European Union €7 Million Grant for Capacity Building

In addition to AFD financing, the European Union has granted €7 million—managed by AFD—to support grid management capacity building. The funds will be used for:

• Scholarships and Fellowships: Over 50 Kenyan engineers and grid operators will receive scholarships to attend specialized courses at institutions like École des Ponts ParisTech and Strathmore University’s Energy Centre.
  
• On-Job Training: Short-term assignments at RTE in France, exposing Kenyan staff to advanced European grid management techniques.
  
• Workshops and Seminars: Monthly events led by experts from the International Energy Agency (IEA) and African Energy Chamber, covering topics such as cybersecurity in the grid, renewable forecast integration, and regulatory best practices.
  
• Development of a Training Simulator: A replica of the NSCC’s control room in Nairobi will be set up at the KPLC Training Center in Parklands, Nairobi, allowing operators to practice grid scenarios—like sudden generation loss or line faults—before going live on the real system.
  

By investing in human capital alongside infrastructure, the EU grant ensures that Kenyan engineers are equipped to operate and maintain the modernized grid long after project completion.

Regional Power Integration

Linking East and Southern Africa

Kenya sits at the geographical heart of Eastern Africa, making it an ideal hub for power trade. The NSCC will function as a central dispatch point for cross-border interconnectors, including:

• Kenya–Uganda Interconnector (400 kV)
  
  • Currently under construction, this line will enable Kenya to export surplus geothermal power to Uganda and, in turn, import hydropower from Uganda during droughts.
    
  • A memorandum of understanding (MoU) between KETRACO and Uganda Electricity Transmission Company Limited (UETCL) was signed in April 2025, outlining scheduling and cost allocation protocols.
    
• Kenya–Tanzania Interconnector (400 kV)
  
  • Slated for completion in late 2025, this project will link Kenya’s grid to Tanzania Electric Supply Company (TANESCO), fostering energy exchange.
    
  • It supports the broader Eastern Africa Power Pool (EAPP) objective of creating a unified market, where power can be traded efficiently, reducing the need for expensive thermal plants in each country.
    
• Kenya–Ethiopia Link (Transmission Study Phase)
  
  • In February 2025, KETRACO, in partnership with the Ethiopian Electric Power (EEP), completed a feasibility study for a high-voltage line connecting Moyale (Kenya) to Chiro (Ethiopia), enhancing access to Ethiopia’s abundant hydropower and potentially Egypt’s electricity via the Nile basin ring.
    

In April 2025, the Zambia–Tanzania Interconnector (ZATIS) was commissioned, marking a milestone in Southern Africa’s integration. Similarly, Kenya’s NSCC will usher in a new era of regional electricity trade, allowing countries to optimize resources—balancing hydropower fluctuations, leveraging geothermal during dry spells, and using wind/solar surpluses.

Benefits to Social and Economic Development

Improved Access and Reliability

• Reduced Outages: By centralizing control, the NSCC is expected to cut nationwide unscheduled outages by 40%, translating to fewer disruptions for factories, shops, and households.
  
• Extended Hours of Service: Rural businesses—like agro-processing mills and refrigeration units—will operate longer, improving incomes and reducing food spoilage in places like Kisii County and Turkana.
  
• Healthcare and Education: Hospitals in remote areas, such as Kitui County Referral Hospital, will benefit from stable power, enabling reliable operation of critical equipment (e.g., incubators, dialysis machines). Schools in Samburu and West Pokot will better integrate e-learning tools, raising educational outcomes.
  

Economic Growth and Job Creation

• Construction Phase Employment: The NSCC project has created over 800 direct jobs, including civil engineers, electricians, project managers, and administrative staff. Local contractors and suppliers benefit through procurement of building materials, logistics, and catering services.
  
• Long-Term Technical Roles: KETRACO estimates that operating the NSCC will require 120 full-time specialists—grid operators, data analysts, and maintenance engineers—many of whom will be trained under the EU capacity-building program.
  
• Downstream Industries: Reliable power supply lowers production costs for industries such as textile manufacturing in Nairobi’s Industrial Area and flower farms around Naivasha, enabling them to be more competitive in exports and reducing their reliance on diesel generators.
  

Environmental and Climate Impact

• Lower Emissions: By optimizing the dispatch of geothermal and wind resources, Kenya can reduce its dependence on thermal power (diesel and heavy fuel oil), cutting CO₂ emissions by an estimated 350,000 metric tons annually.
  
• Encouraging Renewables: A more stable grid unlocks private investment in rooftop solar and mini-grids, particularly in arid northern regions where grid-extension costs are high.
  
• Forest Conservation: Reduced need for small thermal generators (often powered by wood fuel) lessens deforestation pressures around towns like Garissa and Wajir, protecting biodiversity and limiting local air pollution.
  

Kenya’s Role in AFD’s East African Portfolio

Kenya hosts the largest energy portfolio for AFD in East Africa, with over €1 billion in ongoing and completed projects across renewable energy, rural electrification, and grid modernization. Key AFD-supported initiatives in Kenya include:

• Lake Turkana Wind Power (LTWP): AFD provided a €125 million financing package in 2017 for the 310 MW wind farm—the largest in Africa. LTWP now supplies roughly 17% of Kenya’s electricity demand during peak hours.
  
• Olkaria Geothermal Expansion: Through concessional loans totaling €180 million, AFD has supported the expansion of the Olkaria geothermal complex (phases V and VI), adding an additional 270 MW capacity in 2023.
  
• Rural Electrification Programme: AFD has funded €45 million toward extending distribution lines to off-grid communities in northern Kenya, benefiting over 150,000 households.
  

By positioning Kenya as a regional leader in clean energy, AFD aims to replicate success stories in neighboring countries. For instance, lessons learned from Olkaria’s public-private partnership (PPP) model are informing Tanzania’s Geothermal Development Company (GDC) strategy around Ngorongoro and Rungwe geothermal prospects. The NSCC, thus, is not just a Kenyan project but a cornerstone of France’s broader East African energy roadmap.

Renewable Energy Integration and Future Prospects

Geothermal: Kenya’s Backbone

Kenya’s proven geothermal potential—estimated at over 10,000 MW along the Rift Valley—has positioned it as a continental leader. The Menengai project (157 MW), financed by the World Bank and AFD, and smaller concession blocks around Baringo and Tarawali are poised for development. The NSCC’s advanced monitoring will ensure that these geothermal plants can ramp up or down quickly to match load changes, reducing curtailment.

Wind Power: Harnessing the Turkana Winds

The Lake Turkana Wind Power (LTWP) facility, operational since 2019, has faced integration challenges due to grid constraints. Before NSCC, high winds often led to curtailment of up to 20%. Once online, the NSCC’s forecasting and automatic dispatch tools will allow LTWP to feed more uninterrupted power into the national grid, boosting revenues and incentivizing expansions to 500 MW eventually.

Solar Photovoltaic (PV) Growth

Solar parks such as the Garissa Solar Power Plant (54 MW) and pilot floating PV projects on Lake Magadi have illustrated Kenya’s solar potential. With the NSCC, KETRACO can better manage voltage fluctuations that arise when large solar fields come online at midday. Moreover, distributed rooftop solar on commercial buildings in Nairobi, Mombasa, and Kisumu can be integrated via smart inverters feeding data back to the NSCC.

Emerging Technologies: Battery Storage and Green Hydrogen

While not part of the initial NSCC scope, Kenya is exploring battery storage to firm up intermittent renewables. A 50 MW/200 MWh lithium-ion storage project—currently in the feasibility stage—would be connected to the NSCC to provide ancillary services (frequency regulation, spinning reserve). Additionally, Kenya’s abundant geothermal steam at Olkaria is being evaluated for green hydrogen production, which could be exported or used for domestic industry. The NSCC would play a pivotal role in managing the dynamic loads of electrolysis plants.

Challenges and Capacity Building

Technical and Institutional Hurdles

• Talent Gap: Despite having qualified engineers, Kenya faces a shortage of grid operators skilled in advanced SCADA and EMS platforms. The EU’s €7 million capacity building aims to address this, but retention of talent—especially in the face of private sector poaching—remains a concern.
  
• Cybersecurity Risk: As grid operations become more digital, the risk of cyberattacks increases. In late 2024, a malware incident in a neighboring country temporarily disrupted substation control. Kenya must invest in continuous security audits, penetration testing, and operator training to mitigate threats.
  
• Regulatory Coordination: Aligning policies between KETRACO, KPLC, and the Energy and Petroleum Regulatory Authority (EPRA) is essential to ensure that dispatch instructions from the NSCC translate into commercial settlements and tariff adjustments on time.
  

Ensuring Sustainability and Maintenance

• Long-Term Maintenance Contracts: GE Vernova and L&T have committed to 5 years of post-commissioning support under a Service Level Agreement (SLA). This includes routine system updates, hardware replacements, and emergency response within 6 hours of a critical alarm. KETRACO is also recruiting 10 new maintenance engineers to work closely with the consortium during this period.
  
• Continuous Training: Beyond initial workshops, KETRACO plans to establish a Grid Operations Academy in partnership with the University of Nairobi’s Department of Electrical Engineering. This academy will offer diploma and certificate programs in power systems, renewable integration, and grid cybersecurity.
  

Financing Sustainability

• Debt Servicing: Although concessional, the combined €94 million loan will require Kenya to allocate Sh1.2 billion annually toward principal and interest from 2028 onwards. The Treasury and Ministry of Energy are negotiating to ensure these payments align with KPLC’s tariff review cycles, minimizing immediate impact on consumers.
  
• Attracting Private Investment: By demonstrating success with NSCC, Kenya aims to attract public-private partnerships (PPPs) for future grid expansions, particularly in northern regions where electrification costs are higher. The World Bank’s Scaling Solar program in Zambia and Rwanda serves as a model: if Kenya can auction solar + storage packages, the NSCC will assure investors of reliable grid access.
  

Next Steps and Long-Term Outlook

Completion Timeline and Commissioning

• Construction Phase: L&T and GE Vernova commenced civil works and equipment installation in March 2025, targeting December 2025 for mechanical completion.
  
• Testing & Commissioning: From January to March 2026, the consortium, alongside KETRACO’s commissioning team, will conduct system integration tests, emergency drills, and operator certification.
  
• Commercial Operation Date (COD): By April 2026, the NSCC is expected to be fully operational, ready to handle live grid data and dispatch commands.
  

Future Expansion of Control Centers

Kenya envisions a network of regional control centers—smaller satellite hubs in Mombasa, Eldoret, and Kisumu—linked to the central NSCC. These centers would manage localized issues, easing the load on the Nairobi facility and providing quick response to regional faults. A pilot regional center in Mombasa is slated for planning in late 2025, focusing on coastal power flows and the Kwale-Tsavo corridor.

Transition to Smart Grid and Digitalization

Beyond traditional SCADA/EMS, Kenya is exploring Advanced Distribution Management Systems (ADMS) to complement the NSCC. ADMS will enable:

• Outage Management: Automated fault location, isolation, and service restoration (FLISR) in distribution networks, reducing restoration times from hours to minutes.
  
• Distributed Energy Resource Management Systems (DERMS): Integration of rooftop solar, community microgrids, and electric vehicle chargers, allowing bidirectional power flows and peer-to-peer energy trading.
  
• Customer Engagement Portals: Web and mobile platforms where consumers can monitor real-time consumption, receive outage alerts, and participate in demand-response programs—flattening peak demand curves.
  

With the NSCC as the backbone, Kenya’s grid is poised to evolve into a smart grid—resilient, flexible, and customer-centric.

Conclusion

The Sh12 billion National System Control Centre (NSCC) project, jointly financed by the French Development Agency (AFD) and the French Treasury, represents a transformative leap for Kenya’s power sector. By consolidating grid operations under a state-of-the-art facility, Kenya aims to reduce outages, optimize renewable energy integration, and position itself as a regional electricity hub for Eastern and Southern Africa. The collaboration between GE Vernova, Larsen & Toubro, KETRACO, and French partners highlights a shared commitment to sustainable development, capacity building, and economic growth.

As the NSCC moves toward commissioning in early 2026, stakeholders from small businesses in Nairobi to pastoralist communities in Turkana hold their breath for a future powered by reliable, affordable, and green electricity. In an era where climate change intensifies droughts and floods, a stable grid—capable of absorbing new wind, solar, and geothermal plants—becomes not just an economic imperative but a lifeline for millions.

Looking ahead, Kenya’s grid modernization story is just beginning. With the NSCC as its cornerstone, the nation is set to embrace a smart, digitalized, and climate-resilient energy future—one where every household, clinic, and factory can tap into Kenya’s vast renewable potential, powering economic transformation for decades to come.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

3rd June, 2025