Kenya has officially signed a Ksh95 billion agreement with India’s Adani Energy Group to construct 422 kilometers of essential power transmission lines.
Energy Cabinet Secretary Opiyo Wandayi announced the deal on October 11, 2024, describing it as a transformative initiative aimed at strengthening the nation’s electricity infrastructure.
The contract, finalized after four months of negotiations, is slated to address the persistent power blackouts that have plagued Kenya, particularly as the economy continues to grow. Wandayi stated,
“This agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya.”
Despite the promise of modernization, the partnership has not been without its critics. Adani Group has faced scrutiny regarding its operational practices, raising concerns among stakeholders about the implications of involving a company with a controversial background.
Nevertheless, Wandayi defended the collaboration, emphasizing the urgent need for enhanced infrastructure to support economic growth.
Details about the agreement remain limited as KETRACO, the Kenya Electricity Transmission Company, has chosen not to disclose specifics. Initial projections show that the project will be financed through a mix of debt and equity, with repayment expected over 30 years.
However, the potential financial burden could reach Ksh634.7 billion (USD 4.92 billion) for Kenyans, heightening concerns about possible increases in electricity prices.
The project includes the construction of three high-voltage power transmission lines and two substations, designed to bolster connectivity within the national grid. While Wandayi assured that a competitive bidding process would prioritize local content, the government must clarify how this agreement will impact consumers already grappling with high living costs.
