The Kenya Electricity Transmission Company Limited (KETRACO) has signed a Sh95.68 billion ($736 million) agreement with Adani Energy Solutions Limited to build and operate four electricity transmission lines and two substations in Kenya.
The 30-year agreement aims to address the country’s persistent power outages and enhance its electricity infrastructure. Adani Energy Solutions will invest in the project and then transfer the assets to KETRACO after 30 years.
“As part of this infrastructure development, the Project Company will raise all the funding in the form of debt and equity that will be repaid over the 30 years of the project agreement,” Energy Cabinet Secretary, Opiyo Wandayi said in a statement seen by Khusoko.
The project includes the construction of the following transmission lines:
- 400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line (208.73 km)
- 220kV Rongai-Keringet-Chemosit Line (99.98 km)
- 132kV Menengai-Ol Kalou-Rumuru Line (89.88 km)
Additionally, two substations will be built: a 400/220kV substation at Lessos and a 132/33kV substation at Thurdibuoro.
The project is expected to create job opportunities and stimulate economic activity in various parts of Kenya.
While the agreement has been welcomed by the government, there have been concerns raised about the transparency of the process and the financial capacity of Adani Energy Solutions. The IC Law advocates have requested access to information regarding the partnership, tendering process, and project viability.
The government has defended the agreement, stating that it is a crucial step towards improving Kenya’s energy infrastructure and addressing the challenges of power outages.
