Kenya’s Energy and Petroleum Cabinet Secretary, James Opiyo Wandayi, has announced a monumental partnership between Kenya Electricity Transmission Company Limited (KETRACO) and Adani Foundation Energy Ltd. This Ksh95.7 billion deal is set to revolutionize Kenya’s energy sector by addressing persistent power blackouts.
The 30-year agreement focuses on the development, operation, and maintenance of critical power transmission lines and substations.
During the announcement made on Friday, October 11, Wandayi referred to the agreement as a “game changer” in the power transmission landscape. The agreement comes after months of negotiations, culminating in the signing of the contract on October 9, 2024.
“The signing of this agreement signals a transformative step towards enhancing our power infrastructure. It will ensure stable, widespread power access across Kenya, supporting our growing economy,” said Wandayi.
Adani Ksh95.7 Billion Deal
Kenya’s economy has been plagued by frequent blackouts, which disrupt businesses and households. The new deal with Adani Energy Solutions aims to curb this by constructing three major power transmission lines and two substations. These developments will enhance the national grid’s stability and increase electricity access across the country.
This ambitious project will not require any government expenditure. Instead, Adani Energy Solutions will finance the entire project through debt and equity, a model aimed at ensuring value for money.
This partnership aligns with Kenya’s Vision 2030 and President Ruto’s Bottom-Up Economic Transformation Agenda, focusing on increasing electricity access, supporting industrial growth, and creating jobs.
Key transmission lines set for development include:
- Gilgil-Thika-Malaa-Konza Line (400kV): A double-circuit transmission line spanning 208.73 kilometers.
- Rangai-Kenegut-Chemosit Line (220kV): Covering 99.98 kilometers.
- Menengai-Ol Kalou-Rumuruti Line (132kV): Extending 89.88 kilometers.
Additionally, substations at Lessos and Thura Buru will strengthen local distribution grids, further expanding access to power in underserved areas.
Adani to Manage Kenya’s Transmission for 30 Years
Adani Energy Solutions will manage the operation of the power infrastructure for 30 years. After this period, they will hand over all assets to KETRACO. This long-term approach aims to ensure sustainability and efficiency in power transmission, providing Kenyans with reliable electricity for decades.
CS Wandayi reassured the public that rigorous due diligence was conducted on Adani Energy Solutions before the deal was signed. Additionally, comprehensive stakeholder engagement was carried out to address any concerns.
“This project exemplifies our commitment to fiscal responsibility and transparency,” added Wandayi. “The government is focused on delivering world-class infrastructure without burdening taxpayers.”
The partnership between KETRACO and Adani is happening on a backdrop of another deal with Kenya Airports Authority (KAA) to take over operations and developments at Jomo Kenyatta International Airport, a move that has attracted widespread criticism from Kenyans.
