- The Sh95.68 billion deal aims to improve electricity reliability across the country and tackle frequent power outages
- The project will be fully funded by the private sector, with Adani Energy Solutions responsible for raising capital and managing infrastructure for 30 years
- The government emphasises that it will not bear any financial burden for the project
Energy and Petroleum Cabinet Secretary Opiyo Wandayi has announced a significant new partnership between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited.
The Sh95.68 billion deal aims to address Kenya's power infrastructure challenges and improve electricity reliability across the country.
Addressing power outages
The agreement is set to transform Kenya's electricity transmission network by developing and operating essential transmission lines and substations.
CS Wandayi emphasised that the project would play a crucial role in tackling the country's frequent power outages, which have hindered economic growth.
"All Kenyans are well aware of the significant challenge that our country faces with persistent power blackouts.
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"These projects are designed to significantly enhance our national electricity infrastructure, ensuring reliable and widespread access to power that will support Kenya’s growing economy and development goals," he stated.
This development is expected to significantly improve access to electricity, helping to power Kenya's industries, businesses, and homes more effectively.
Fully private sector funded
A major feature of the deal is that it will be fully funded by the private sector, with Adani Energy Solutions taking responsibility for both raising the necessary capital and managing the infrastructure for the next 30 years.
The long-term agreement ensures that the company will operate and maintain the facilities, with ownership transferring to KETRACO after the project period.
Wandayi noted the financial advantages for the government, highlighting that the state will not bear any financial burden for the project.
READ: Kenya Power outage: CS Opiyo Wandayi explains why national grid collapsed
"The Kenyan government will not be required to spend any money on this project. The competitive bidding process has ensured value for money, and the private sector will fully fund the initiative," said Wandayi.
Rigorous due diligence
KETRACO conducted extensive due diligence before finalising the agreement. CS Wandayi reassured stakeholders that the necessary checks were carried out to ensure the suitability of Adani Energy Solutions for the project.
This included thorough stakeholder engagement to address any concerns that had been raised.
"Before signing the agreement, KETRACO conducted comprehensive due diligence on Adani Energy Solutions as the project proponent, along with thorough stakeholder engagement.
"This ensures that all concerns have been addressed and the project is primed for successful execution," Wandayi explained.