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October 16, 2024
1st Afrika
Africa POLITICS

Adani Group Secures Sh96 Billion Deal to Build and Operate Kenya’s Power Lines for 30 Years

In a landmark agreement, India’s Adani Group has secured a Sh96 billion contract to build, operate, and maintain power transmission lines in Kenya for the next 30 years. The deal, signed with Kenya Electricity Transmission Company (KETRACO), marks a major step in modernizing Kenya’s electricity infrastructure and meeting the country’s growing demand for reliable power.

The agreement positions Adani as a key player in Kenya’s energy sector, as the company will be responsible for developing extensive transmission lines that will significantly enhance the national grid’s capacity. Adani will finance, construct, and manage the transmission infrastructure for three decades, after which the assets will be handed back to the Kenyan government.

This public-private partnership is part of Kenya’s broader plan to attract foreign investment into its energy sector, especially in transmission and distribution networks, which have lagged behind the rapid expansion of generation capacity. The deal will also support the integration of renewable energy into the grid, reinforcing Kenya’s commitment to green energy and sustainability.

Speaking at the signing ceremony, KETRACO’s Managing Director highlighted the importance of the deal, stating, This is a transformative partnership that will not only expand our electricity transmission capacity but also ensure that we meet the rising demand for power in the country. Adani’s expertise in managing large-scale infrastructure projects makes them an ideal partner for this venture.

The project will focus on constructing high-voltage lines that will enhance electricity access in underserved regions, bolster industrial growth, and ensure that Kenya’s electricity distribution network becomes more resilient. The new infrastructure will help reduce power losses, improve efficiency, and stabilize the energy supply for both urban and rural areas.

Gautam Adani, Chairman of Adani Group, expressed optimism about the deal, noting that this investment aligns with Adani’s global vision of expanding its energy footprint in developing countries. Kenya offers tremendous potential for growth, and we are honored to be part of its journey towards energy security and sustainable development.

The deal also includes provisions for job creation and technology transfer, with a significant portion of the workforce expected to be sourced locally. Kenyan engineers and technicians will be trained and equipped with new skills, further boosting the country’s capacity to manage its energy infrastructure in the long term.

Construction of the transmission lines is set to begin in early 2025, with several key regions in Kenya prioritized for early implementation. This partnership is expected to have a lasting impact on Kenya’s energy landscape, contributing to the country’s economic growth by ensuring a steady and reliable power supply for industries and households alike.

The 30-year concession model provides Adani with a return on investment while ensuring that Kenya benefits from modernized infrastructure, positioning the nation as a leader in the East African energy market.

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