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Active Mixed AidData Chinese Aid

China Eximbank provides RMB 575.5 million government concessional loan for 132KV Kenya Power Transmission Expansion Project (KPTEP) (Linked to Record ID#58359)

¥575.5K RMB

Funder Export-Import Bank of China (China Eximbank)
Recipient Organization Kenya Ministry of Finance (AKA National Treasury)
Country Kenya
Start Date Apr 04, 2017
End Date Oct 07, 2033
Duration 6,030 days
Number of Grantees 1
Roles Recipient
Data Source AidData Chinese Aid
Grant ID 58510
Grant Description

China Eximbank provides RMB 575.5 million government concessional loan for 132KV Kenya Power Transmission Expansion Project (KPTEP) On April 4, 2017, China Eximbank and the Government of Kenya signed an RMB 575,507,992.10 government concessional loan for 132KV Kenya Power Transmission Expansion Project (KPTEP).

The proceeds of the loan were on-lent to a Kenyan state-owned electricity company called the Kenya Electricity Transmission Company Limited (KETRACO). The loan carries a maturity of 18.25-years (final maturity date: July 21, 2035).

The ultimate borrower (KETRACO) used the loan proceeds to finance a commercial contract with China Aerospace Construction Group Corporation Limited. Loan disbursements worth RMB 42,233,873.01 took place between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021). Loan disbursements worth RMB 90,938,925.44 took place between July 1, 2021 and June 30, 2022 (Fiscal Year 2021-2022).

The loan's amount outstanding was RMB 42,233,873.01 as of June 30, 2021 and RMB 133,172,798.45 as of June 30, 2022.

The purpose of the project is to construct 210 kilometers of electricity transmission lines, including (1) the construction of a 50 km, double-circuit 132kV Awendo-Isebania transmission line — that runs through Migori — and a new substation in Isebania, (2) the construction of a 120 km, single-circuit 132kV Sultan Hamud-Loitoktok overhead transmission line (OHL) — that runs from Makueni County to Kajiado County in Mashuuru and Oloitokitok Sub Counties — and two associated substations; and (3) the construction of a 40 km, double-circuit 220kV Isinya-Konza transmission line that connects Konza substation to the Isinya substation, thereby ensuring reliable power supply for Konza Technopolis (or the Konza Techno City), which is an innovation hub constituting of technology firms and it is situated on a 5,000-acre piece of land 60 km from the country’s capital city of Nairobi.

China Aerospace Construction Group Corporation Limited is the contractor responsible for project implementation. The construction of the Isinya-Konza transmission line commenced on or around November 14, 2019. This project component was originally scheduled for completion by December 2022.

The construction of the 120 km, single-circuit 132kV Sultan Hamud-Loitoktok overhead transmission line began in March 2022. As of 2021, the overall project had achieved a 55% completion rate.

📋 Staff Comments
  1. This project is also as Phase 2 of the Kenya Power Distribution System Modernization & Strengthening Project, the Kenya Power Transmission Expansion Project, 210Km 132KV Kenya Power Transmission Expansion Project (KPTEP), the Sultan-Hamud-Loitoktok 120km, 132kV Transmission Line and Associated Sub-stations Project, the 50 km, 132 KV Awendo-Isebania Transmission Line Project, the 40 km, 220 KV Isinya-Konza Transmission Line Project, and the KENYA POWER TRANSMISSION EXPANSION PROJECT: 132KV AWENDO - ISEBANIA, 132KV SULTAN HAMUD - LOITOKTOK & 220KV ISINYA - KONZA Project.
  2. Some sources, including SAIS-CARI and Boston University, suggest that a separate, stand-alone China Eximbank loan (or buyer’s credit) in 2019 was issued for the 40 km, 220 KV Isinya-Konza Transmission Line Project. However, AidData has not yet identified any official evidence from the Government of Kenya’s public debt register or e-ProMIS that a 2019 loan agreement was ever signed. This issue warrants further investigation.
  3. The Kenya Electronic Project Management Information System (e-ProMIS) project identification number is Ket0012019. The KETRACO project identification number is MOE&P/KPTEP-01-2015. The loan identification number in the Government of Kenya’s external public debt register is 2017014_1.
  4. e-ProMIS identifies the loan commitment date as April 4, 2017 rather than May 15, 2017. This issue warrants further investigation.
  5. Some sources suggest that the loan was issued in the form of a buyer’s credit (with credit insurance from Sinosure) to finance 85% of the commercial contract between KETRACO and China Aerospace Construction Group Corporation Limited. This issue warrants further investigation.
  6. Some sources suggest that the face value of the loan was RMB 677,068,226 ($112,000,000) and it was issued on May 15, 2017. This issue warrants further investigation.
  7. The amounts outstanding, disbursements, and repayments data are drawn from the Kenyan Treasury’s External Public Debt Register. See https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 and https://www.dropbox.com/s/0et4jg1qfg1bo7r/External-Public-Debt-Register-as-at-End-June-2021.pdf?dl=0 and https://www.dropbox.com/s/233j706743q7f1g/External-Public-Debt-Register-as-at-End-June-2020.pdf?dl=0 and https://www.dropbox.com/s/qkoybr9ja0ohemy/External-Public-Debt-Register-as-at-End-June-2009.pdf?dl=0 and https://www.dropbox.com/s/thy3s6ggjcjd97z/External-Public-Debt-Register-as-at-End-June-2012.pdf?dl=0 and https://www.dropbox.com/s/fzbfq01vas6m0i9/External-Public-Debt-Register-as-at-End-June-2019.pdf?dl=0 and https://www.dropbox.com/s/ennrl6d4zd2nizs/External-Public-Debt-Register-as-at-End-June-2018.pdf?dl=0 and https://www.dropbox.com/s/8ibazrj1a8oho2d/External-Public-Debt-Register-as-at-End-June-2017.pdf?dl=0 and https://www.dropbox.com/s/wdbjl0wq49i09x1/External-Public-Debt-Register-as-at-End-June-2015.pdf?dl=0
📚 Sources & References
  • 肯尼亚输变电工程项目融资协议签署
  • Environmental and Social Studies for Transmission Lines
  • 扎根东非大地的中国航天人 ——中国航天科工航天建设肯尼亚公司发展纪实
  • Kenyan gov't
  • Chinese firm launch construction of major power transmission project, e-ProMIS Kenya 056988 Full
  • More Belt Road projects move ahead in Africa
  • Chinese Contractor Urged To Fast-Track Completion Of Konza-Isinya Transmission Line
  • 中国航天建设承建肯尼亚电压等级最高变电站施工准备
  • 赵希源公参出席肯尼亚电力传输扩建项目开工仪式
  • Kenya's Konza substation undertaken by Chinese firm starts construction preparation, 2019-2020 Annual Report & Financial Statements, 2018-2019 Annual Report & Financial Statements
  • Government launches high voltage substation in Konza
  • Kenya Borrowed Sh430 Billion in Four Months - Report
  • Treasury has borrowed a record Sh430 billion in four months
  • Third Annual Progress Report 2020/21 On the Implementation of the Third Medium Term Plan (2018-2022) of the Kenya Vision 2030
  • Awendo – Isibania
  • Kenya Electricity Transmission Company (KETRACO) through China Aerospace Construction Group Limited
  • Kenya
  • Awendo – Isibania.
  • EIA_1292 Sultan Hamud-Loitokitok transmission line
  • Kenya: Chinese firm to build Konza Technopolis power line
  • PARLIAMENT OF KENYA THE NATIONAL ASSEMBLY THE HANSARD Tuesday, 9th June 2020
  • NZAMBIA: KONZA- ISINYA PROJECT TO CONTRIBUTE TO DEVELOPMENT OF KONZA METROPOLIS
  • Isinya – Konza
  • Isinya-Konza_Full_ESIA_Study_Report (1)
  • Plans to Supply Reliable Power to Konza Technopolis Investors’ on Course
  • The 93km 400kV Kenya-Tanzania interconnector, the 103km 400kV Isinya – Suswa line, the 45km 400kV Isinya – Konza line, the 482km 400kV Mombasa – Nairobi line, the 96km 132kV Isinya – Namanga line, and the 44.3km 220kV Isinya - Athi River/Embakasi line.
  • KETRACO registers big transmission milestones
  • KPLC starts transmission tower construction along Sultan Hamud-Loitoktok line, 400kV Konza-Isinya Power Line to be constructed by Chinese Firm
  • China Funds and Builds Transmission line for Kenya's Smart City
  • Kenya: Construction of 400kV Konza-Isinya power line launched
  • ENYA POWER TRANSMISSION EXPANSION PROJECT: 132KV AW ENDO - ISEBANIA, 132KV SULTAN HAMUD - LOITOKTOK & 220KV ISINYA - KONZA
  • The National Treasury Public Debt Management Office Summary Statement 2021/2022
  • SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY
  • Chinese Loans to Africa Database (2022 Update) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees

Kenya Ministry of Finance (AKA National Treasury)

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