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Kenya-Tanzania Power Interconnection Marks Regional Integration Milestone

January 10, 2025
7 min read
By Africa Compliance News Team
Kenya-Tanzania Power Interconnection Marks Regional Integration Milestone

The new 400kV transmission line connecting Kenya and Tanzania enables cross-border electricity trade, with Kenya transmitting 50MW from Ethiopia to Tanzania in June 2025.

Historic Power Grid Connection

In a groundbreaking development for East African regional integration, Kenya and Tanzania have successfully operationalized a major power interconnection project that promises to transform energy access and trade across the region.

Project Overview

The 400kV transmission line stretches approximately 507.5 kilometers from Namanga in Kenya through Arusha to Singida in central Tanzania. This infrastructure links Tanzania's grid to Kenya, Uganda, Rwanda, and the Democratic Republic of Congo as part of the Eastern Africa Power Pool (EAPP).

Key Milestones:

  • January 2025: NEPAD celebrates project completion as major PIDA milestone
  • June 2025: Kenya successfully transmits 50MW from Ethiopia to Tanzania
  • Current Status: Grid flow increased from 225MW to 262MW

Economic Impact

The power interconnection delivers multiple economic benefits:

For Tanzania:

  • Immediate Relief: Access to 400MW of imported power during shortages
  • Cost Reduction: Lower electricity costs for manufacturers
  • Grid Stability: Enhanced reliability through regional power pooling
  • Future Revenue: Potential to export surplus power when available

For Kenya:

  • Transit Revenue: Earnings from power wheeling services
  • Strategic Position: Hub for regional power trade
  • Grid Optimization: Better utilization of transmission infrastructure

Regional Integration Benefits

This project exemplifies the vision of the East African Community (EAC) for integrated infrastructure:

  1. Energy Security: Multiple power sources reduce dependency on single suppliers
  2. Economic Efficiency: Shared infrastructure lowers costs for all countries
  3. Investment Catalyst: Reliable power attracts foreign direct investment
  4. Climate Goals: Facilitates sharing of renewable energy resources

Trade Corridor Development

The power interconnection complements broader infrastructure initiatives:

Northern Corridor Railway

  • Standard Gauge Railway expansion from Nairobi to Kisumu and Malaba
  • Isaka-Kigali extension providing Rwanda with Indian Ocean access
  • Chinese BRI-backed projects driving integration

Road Infrastructure

  • Bypass roads boosting Kenya-Tanzania cross-border trade
  • Enhanced customs procedures at border points
  • Reduced transport costs and transit times

Shifting Trade Dynamics

Recent data reveals changing trade patterns in the region:

  • Kenya's Ascendance: Now Rwanda's preferred trading partner
  • October 2024 Trade: Kenya-Rwanda trade at $121.45 million
  • Growth Rate: 241.55% increase from September to October 2024

Technical Specifications

The transmission infrastructure includes:

  • Voltage: 400kV high-voltage transmission
  • Capacity: Up to 400MW transfer capability
  • Length: 507.5km of transmission lines
  • Substations: Multiple transformation points for grid integration

Regulatory Framework

Power trade operates under established protocols:

  • East African Community energy regulations
  • Bilateral power purchase agreements
  • EAPP technical and commercial rules
  • National energy regulatory oversight

Future Expansion Plans

The success of Kenya-Tanzania interconnection paves the way for:

Phase 2 Developments:

  • Extension to Burundi and South Sudan
  • Increased capacity on existing corridors
  • Integration with Ethiopia's Grand Renaissance Dam power
  • Connection to Southern African Power Pool (SAPP)

Renewable Energy Integration:

  • Solar power sharing during peak production
  • Wind energy trading between coastal and inland areas
  • Geothermal energy exports from Kenya's Rift Valley
  • Hydropower optimization across river basins

Business Opportunities

The power interconnection creates opportunities for:

  1. Energy Traders: Cross-border power trading companies
  2. Manufacturers: Lower energy costs in Tanzania
  3. Project Developers: Demand for generation capacity in power-deficit areas
  4. Technology Providers: Smart grid and metering solutions

Environmental Benefits

Regional power pooling supports climate objectives:

  • Reduced reliance on diesel generators
  • Optimal use of renewable energy resources
  • Lower carbon emissions from power generation
  • Support for green industrialization

Lessons for Africa

The Kenya-Tanzania interconnection demonstrates:

  • Value of regional cooperation over national isolation
  • Importance of infrastructure investment for trade facilitation
  • Role of multilateral development finance in major projects
  • Benefits of technical and regulatory harmonization

Implementation Challenges Overcome

The project addressed multiple obstacles:

  • Complex cross-border regulatory coordination
  • Significant capital investment requirements
  • Technical challenges of long-distance transmission
  • Land acquisition and community engagement

Looking Ahead

As East Africa continues integrating its power systems, the Kenya-Tanzania interconnection serves as a model for continental ambitions under the African Continental Free Trade Area. The combination of physical infrastructure, supportive policies, and commercial frameworks is creating an environment where regional trade can flourish.

For businesses operating in East Africa, these infrastructure developments signal growing opportunities in manufacturing, agri-processing, and value-added industries that benefit from reliable, affordable electricity.

Tags:EnergyKenyaTanzaniaInfrastructureRegional IntegrationEAC

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