KETRACO inks a $736 million deal with Adani for Kenya power lines

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Subject(s):
  • The Kenya Electricity Transmission Company Limited (KETRACO) has signed a deal with Adani Energy Solutions, the power subsidiary of India’s Adani Group, to develop transmission lines and substations.
  • The deal, said 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.
  • The project, expected to cost KSh 95.68 billion ($736 million), will be implemented through a competitive bidding process by KETRACO and Adani.

According to Opiyo Wandayi, the Cabinet Secretary for Energy and Petroleum, “the agreement is a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya.”

While it aligns with the government’s goal of increasing access to electricity nationwide and reducing blackouts and transmission losses, Wandayi also stated that it will strengthen the country’s energy infrastructure and contribute to its economic and social transformation.

This 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.

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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).

Kenya is reportedly dealing with 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, 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, while 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.

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