Kenya Partners with Adani Energy Solutions for $736 Million Transmission Project

Kenya Partners with Adani Energy Solutions for $736 Million Transmission Project

The Kenya Electricity Transmission Company Limited (KETRACO) has entered into a landmark agreement with Adani Energy Solutions, the power subsidiary of India’s Adani Group, to develop and operate transmission lines and substations across the country. This collaboration is the first public-private partnership (PPP) power project in Kenya and is expected to transform the nation’s energy infrastructure.Under the terms of the agreement, Adani will raise all project funding—comprising debt and equity—and will recover costs over a 30-year period. Estimated at KSh 95.68 billion ($736 million), the project will be executed through a competitive bidding process led by KETRACO and Adani.According to Energy and Petroleum Cabinet Secretary Opiyo Wandayi, the initiative will play a pivotal role in expanding electricity access, minimizing blackouts, and addressing transmission losses. “This agreement is a transformative step to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya,” Wandayi said.

Scope of the Project

The transmission project will include:

A 400kV Double-Circuit Gilgil-Thika-Malaa-Konza Line: Spanning 208.73 km, with accompanying substations.

A 220kV Line: Covering 99.98 km, including substations at Rongai, Keringet, and Chemosit.

A 132kV Line: Extending 89.88 km, with substations at Menengai, Ol Kalou, and Rumuruti.

Additionally, new substations will bolster the 400kV transmission network, improve regional power stability, and expand the local distribution grid.

Addressing Energy Challenges

Kenya’s power transmission system has faced challenges, including frequent blackouts and infrastructure limitations. While new connections have surged, they have not been matched by adequate upgrades to the transmission network, leading to capacity constraints.The partnership with Adani is expected to modernize the country’s power grid and support Kenya’s broader economic development objectives.

Expanding Infrastructure and Energy Access

This project is part of a broader trend of infrastructural growth in Kenya. Recent developments include the launch of a digital nomad visa to attract skilled workers, the expansion of internet offerings with providers like Starlink, and investments in off-grid and renewable energy solutions.The country is also experiencing a surge in interest in its electric vehicle (EV) sector, with Chinese manufacturer Chery committing $20 million to the market. Additionally, solar companies like d.light are scaling operations to meet growing energy demands.By collaborating with Adani Energy Solutions, Kenya is taking significant steps to enhance its energy infrastructure, support economic growth, and pave the way for a more sustainable future.

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