Kenya’s Energy and Petroleum Cabinet Secretary, Opiyo Wandayi, has announced the signing of a major agreement between the Kenya Electricity Transmission Company Limited (KETRACO) and India’s Adani Energy Solutions Limited. This agreement, valued at Ksh.95.68 billion (USD 736 million), marks a significant step in Kenya’s efforts to improve its power infrastructure, with the ultimate goal of ensuring more stable electricity supply across the country.
Key Details of the Agreement
The agreement between KETRACO and Adani Energy Solutions will focus on the development, financing, construction, and operation of several high-voltage transmission lines and substations throughout Kenya. According to CS Wandayi, this partnership will address one of Kenya’s most pressing issues—frequent power blackouts. These outages have been a challenge for both residential areas and industries, hindering economic growth.
The deal aims to upgrade Kenya’s electricity grid, making power more reliable and accessible. This improvement is crucial for supporting Kenya’s growing economy, which increasingly relies on stable energy to meet the needs of its expanding industries.
“All Kenyans are well aware of the significant challenge our country faces with persistent power blackouts. These projects are designed to significantly enhance our national electricity infrastructure (transmission lines and substations), ensuring reliable and widespread access to power that will support Kenya’s growing economy and development goals,” said CS Wandayi during the announcement.
Project Financing and Long-Term Management
One of the key aspects of this deal is its financial structure. The entire project will be funded by the private sector, specifically through Adani Energy Solutions. The company will raise the necessary capital, both through debt and equity, without the Kenyan government needing to contribute financially.
For the next 30 years, Adani will manage the newly constructed infrastructure under a long-term contract. After this period, the ownership and operational responsibilities will be transferred to KETRACO. This structure ensures that the Kenyan government benefits from upgraded power infrastructure without incurring initial costs.
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“The Kenyan government will not spend any of its own resources on this project,” said CS Wandayi. “This agreement ensures value for money through a competitive bidding process.”
The Energy CS also highlighted that this project has been in the works for four months, involving extensive negotiations. KETRACO undertook thorough due diligence to ensure that Adani Energy Solutions was the right partner for this initiative, conducting detailed reviews and stakeholder consultations to address any potential concerns.
Aims and Long-Term Impact
The primary goal of the project is to strengthen Kenya’s electricity transmission network. This will not only minimize frequent blackouts but also reduce electricity transmission losses. Moreover, the project is in line with the government’s broader ambition to expand electricity access throughout the country, particularly to underserved areas. The infrastructure improvements are expected to empower local communities by creating job opportunities and stimulating economic growth at the grassroots level.
“This project aligns perfectly with the government’s objective of expanding electricity access, minimizing transmission losses, and addressing blackouts,” noted CS Wandayi. “By doing so, it will empower communities, create jobs, and stimulate economic activity in various regions.”
Key Transmission Projects
Several major transmission lines and substations will be constructed as part of this project. Below are the details of some of the critical infrastructure developments:
1.Gilgil-Thika-Malaa-Konza 400kV Double-Circuit Line:
- This line will cover a distance of 208.73 km.
- It includes the construction of new substations in Gilgil, Thika, and Malaa, as well as significant expansions at the Konza substation.
2.Rongai-Keringet-Chemosit 220kV Line:
- This line spans 99.98 km.
- New substations will be built in Rongai, Keringet, and Chemosit to enhance power transmission capacity in these areas.
3.Menengai-Ol Kalou-Rumuruti 132kV Line:
- Covering 89.88 km, this line will also include new substations in Menengai, Ol Kalou, and Rumuruti.
4.Lessos 400/220kV Substation:
- This substation will play a key role in supporting Kenya’s 400kV transmission network, improving overall stability in the power grid, particularly in the western regions of the country.
5.Thurdibuoro 132/33kV Substation:
- Located in an underserved area, this substation will expand the local power distribution grid, bringing much-needed electricity to remote communities.
This multi-billion shilling project is expected to have a transformative impact on Kenya’s electricity network. The new infrastructure will help stabilize power supply and reduce the incidence of power outages, which have long affected households and businesses across the country.
By expanding access to reliable electricity, the project will also support Kenya’s Vision 2030 development goals. Stable power is critical to the country’s ambitions for industrial growth, technological innovation, and improved living standards.
Furthermore, the project’s emphasis on creating local jobs and stimulating economic activity at the community level will help distribute the benefits of development more widely across the country.
The signing of the KETRACO-Adani Energy Solutions agreement represents a major milestone in Kenya’s efforts to enhance its power infrastructure. With private sector funding and long-term management by Adani, the country is set to benefit from significant improvements in electricity transmission, which will in turn support its economic development. As this project unfolds, it promises to address long-standing challenges in Kenya’s power sector and contribute to a brighter, more stable future for all Kenyans.
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