Kenya Partners With Adani for Major Power Infrastructure Overhaul

Kenya Electricity Transmission Company Limited teams up with Adani Energy Solutions Limited to enhance national electricity infrastructure. The agreement, valued at KShs 95.68 billion, aims at developing key transmission lines across Kenya, with Adani handling operations for 30 years before transferring assets to KETRACO.

Kenya Electricity Transmission Company Limited (KETRACO) has entered into a crucial agreement with Adani Energy Solutions Limited to expand and enhance the country's national electricity infrastructure. Opiyo Wandayi, the Kenyan Cabinet Secretary for energy and petroleum, announced this significant partnership, which will develop, finance, construct, operate, and maintain essential transmission lines and substations across Kenya.

Faced with diverse challenges, Wandayi explained that these initiatives are expected to dramatically improve Kenya's electricity infrastructure, fostering reliable and widespread power access. This development is seen as vital support for the nation's expanding economy and ambitious development objectives.

Wandayi highlighted that this agreement was reached after four months of intensive negotiation. The project company will secure funding entirely in debt and equity, to be recovered over 30 years, ensuring financial sustainability without government expenditure.

The projected cost of approximately KShs 95.68 billion (USD 736 million) will be finalized through a competitive bidding process led jointly by KETRACO and the project company, promising significant economic value and local business opportunities for Kenyans.

Furthermore, the Kenyan government emphasizes that it will not bear any financial burden for the project as Adani will manage the transmission lines for three decades, guaranteeing their efficiency and sustainability before handing over the assets to KETRACO.

The development involves five new transmission lines and substations, advancing Kenya's energy infrastructure to world-class standards and underscoring the government's commitment to prudent fiscal management and economic growth. (ANI)

(With inputs from agencies.)