Adani, KETRACO sign Sh95.7 billion energy deal

Energy Cabinet Secretary Opiyo Wandayi. [File, Standard]

The Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited have signed a Sh95.7 billion agreement to operate and maintain transmission lines and substations for 30 years, aiming to address persistent power blackouts across Kenya.

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 noted that Adani would finance the project through a combination of debt and equity, which would be repaid over the 30-year period.

"Adani Energy Solutions will manage the transmission line for 30 years, ensuring long-term sustainability and efficiency," he added.

Adani, with support from KETRACO, will also manage the bidding process for the project. After 30 years, the project's assets will be transferred to KETRACO.

The signing comes amid concerns raised by Kenyans about Adani's credibility.

However, CS Wandayi assured that KETRACO had conducted due diligence on the company, finding no cause for concern.

The 30-year project includes the development of the Gilgil-Thika-Malaa-Konza, and Menengai-Ol Kalou-Rumuruti transmission lines and a substation at Lessos, among other infrastructure improvements.

This agreement marks Adani's second major project in Kenya, while discussions on running JKIA operations are ongoing.