Adani Energy Inks 30-Year Pact to Operate Transmission Lines in Kenya
Indian billionaire Gautam Adani’s Adani Energy Solutions Ltd (AESL) has signed a 30-year agreement to build, operate, and maintain key electricity transmission lines in Kenya. The agreement, signed with the Kenya Electricity Transmission Company Ltd (Ketraco), marks a major step toward improving the country's power infrastructure, according to Kenya's Cabinet Secretary for Energy, Opiyo Wandayi.
"This initiative will finance, construct, and manage critical transmission lines and substations across Kenya, ensuring long-term sustainability", Wandayi stated. Kenya, which faces frequent power blackouts, expects this project to significantly upgrade its transmission infrastructure, leading to more reliable electricity supply.
The project will be fully funded by AESL through debt and equity, to be repaid over the 30-year agreement. The estimated project cost of KSh 95.68 billion (USD 736 million) will be determined through a competitive bidding process, jointly managed by Ketraco and AESL. Importantly, the Kenyan government will not incur any financial burden for this project.
AESL will be responsible for the management of the transmission lines throughout the contract period, after which the project and its assets will be transferred to Ketraco. The development will include three transmission lines and two substations.
Previously, the Adani Group had engaged the Kenyan government to operate the country’s main airport, but the proposal was shelved following public protests.
Wandayi highlighted that Ketraco is also collaborating with a consortium including Africa 50, an infrastructure investment platform, and Power Grid of India on two additional transmission line projects. He emphasized the Kenyan government's commitment to forming strategic partnerships that align with its development objectives, with this project playing a key role in securing Kenya’s future energy supply.
