Adani Takes Over Kenya’s Electricity Business

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Chrispen

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Friday, October 11, 2024 –The Kenya Electricity Transmission Company Limited (KETRACO) has entered into a sh 95.7 billion agreement with Adani Energy Solutions Limited.

This deal will facilitate the operation and maintenance of transmission lines and substations for a duration of 30 years. The initiative, according to the Ministry of Energy, aims to tackle ongoing power outages in Kenya.

“I am pleased to confirm the successful signing of the project agreement between KETRACO and Adani Energy Solutions Limited on October 9.”

Wandayi described this agreement as a transformative measure to develop, finance, construct, operate and maintain essential transmission infrastructure across the nation. Adani will fund the project using a blend of debt and equity with repayment scheduled over the next three decades.

Under this agreement, the Indian investor, with support from KETRACO, will also take charge of the bidding process for the project. After the completion of the 30-year period, ownership of the project’s assets will revert to KETRACO.

This signing comes amid skepticism from some Kenyans about Adani’s reputation.

“That ADANI & KETRACO formally sign the power transmission contract against public sentiment is truly sad! Kenyans have repeatedly voiced their objection to ADANI. ADANI will bring down many in the fullness of time,” Lawyer Donald Kipkorir commented.

Nonetheless, CS Wandayi assured the public that KETRACO conducted thorough evaluations of the company and found no reasons for alarm.

He stated that the comprehensive project involves developing the Gilgil-Thika-Malaa-Konza and Menengai-Ol Kalou-Rumuruti transmission lines, as well as constructing a substation at Lessos, among other infrastructure enhancements.