Kenya has signed a significant $736 million agreement with India’s Adani Energy Solutions to enhance its electricity transmission network. This deal marks Kenya’s first public-private partnership (PPP)-funded power project, addressing the country's power outages caused by ageing infrastructure.

Key Features of the Power-Line Project

The deal involves Adani developing, financing, and operating transmission lines for 30 years before transferring ownership to the Kenya Electricity Transmission Company (Ketraco). The project includes constructing 208.73 km of 400kV lines, 95 km of 220kV lines, and 70 km of 132kV lines, along with key substations at Lessos and Rongai.

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Adani Energy will fund the project through a mix of debt and equity, ensuring no financial burden on the Kenyan government. The project's total cost of 95.68 billion Kenyan shillings ($736 million) includes the construction of new transmission lines and substations to enhance energy distribution.

Long-Term Benefits of the Agreement

Energy and Petroleum Cabinet Secretary, Opiyo Wandayi, highlighted that the agreement with Adani will bring long-term benefits, ensuring reliable energy supply. Adani will operate and maintain the transmission lines and substations, contributing to efficient energy distribution for the next 30 years.

Public Concerns and Transparency Issues

Despite the project’s potential, concerns have been raised over the transparency of the bidding process. A law firm, IC Law LLP, questioned the disclosure of public participation findings and the financial health of Adani’s energy subsidiary. Nonetheless, the project has moved forward, and Adani’s 27% cost reduction demonstrates a commitment to efficient delivery.