“This agreement initiates a transformative effort to develop, finance, construct, operate, and maintain essential transmission lines and substations across Kenya.”
Kenya's power sector
The Kenya Electricity Transmission Company Limited (KETRACO) has put pen to paper in a deal with Indian power company, Adani Energy Solutions, the power subsidiary of India’s Adani Group, to develop transmission lines and substations.
The Sh95.7 billion agreement will be targeted at operating and maintaining transmission lines and substations for 30 years. This step is aimed at addressing persistent power blackouts across Kenya.
This development came into light when Energy Cabinet Secretary Opiyo Wandayi announcing the deal on Friday, October 11, stated, “I am pleased to confirm the successful signing of the project agreement between KETRACO and Adani Energy Solution Limited on October 9.
“This agreement initiates a transformative effort to develop, finance, construct, operate, and maintain essential transmission lines and substations across Kenya.”
Wandayi pointed out that Adani would finance the project through a combination of debt and equity, which would be repaid over the 30-year period. The deal, popularly touted to be the country’s first public-private partnership-funded power project, will have Adani raise all the funding in the form of debt and equity, to be repaid over the 30 years of the project agreement.
“Adani Energy Solutions will manage the transmission line for 30 years, ensuring long-term sustainability and efficiency,” he added. While the deal aligns with the government’s goal of increasing access to electricity nationwide and reducing blackouts and transmission losses, Wandayi also stated that its empowering effects will cut across the country’s energy infrastructure and contribute to its economic and social transformation.
Kenya is reportedly dealing with nigh-incessany blackouts from its power transmission system, where new connections have not been matched with infrastructure upgrades, resulting in capacity constraints.
This also comes as the nation looks to welcome more foreigners due to having just launched a digital nomad visa to attract skilled foreign workers. Internet offerings are also growing, with Starlink launching and offering affordable plans in Kenya. In the same vein, Safaricom has boosted its fibre internet speeds, as well as power-intensive projects like data centres.
However, the country is also seeing an increase in off-grid initiatives, such as the electric vehicle (EV) sector. Chinese EV manufacturer Chery is investing $20 million in Kenya’s EV industry, and solar startups like d.light are looking to scale their operations in Kenya. All of these make the need for a stable electricity infrastructure nonnegotiable.
The Adani project covers the development of a 400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line, spanning 208.73 km, and will include new substations. A 220kV line covering 99.98 km will also include substations in three locations: Rongai, Keringet, and Chemosit. The 132kV line, covering 89.88 km, will have substations at Menengai, Ol Kalou, and Rumuruti.
More substations will also be constructed to support the 400kV transmission network, enhance regional power stability, and expand the local distribution grid. Apeiro Ltd, an Adani-linked firm, recently joined a Safaricom-led consortium to digitise Kenya’s health system by implementing an Integrated Healthcare Information Technology System (IHTS).
