Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited have signed a Sh95.8 billion agreement to develop and maintain key power transmission lines and substations across Kenya. 

The successful signing of the pact was announced on Friday by Energy Cabinet Secretary Opiyo Wandayi, who says the 30-year deal is meant to help Kenya deal with persistent power blackouts.  


“I am pleased to announce the successful signing of the Project Agreement between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited today (the Project Company),” he said. 

He added: “This agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya.”
 
According to Wandayi, the projects are designed to greatly boost Kenya’s national electricity infrastructure to guarantee reliable and widespread access to power to help the country realize her economic agenda. 

“All Kenyans are well aware of the significant challenge that our country faces with persistent power blackouts.”

The CS says the signing marks the end of a negotiation process that lasted four months. 

Adani Energy, as part of the mega infrastructure development, is expected to raise all the funding, in form of debt and equity, to be repaid over the 30-year period the project agreement will last. 

“The project cost, that is currently estimated at Sh95.68 Billion (USD 736m) will be crystallised through a competitive bidding process, that will be jointly handled by KETRACO and the Project Company, thus ensuring significant value for money for the country.”

Wandayi stated that the competitive bidding process would prioritise local content and ensure the prioritization of business opportunities for Kenyans
 
“It is important to note that the Government of Kenya will not incur any financial expenditure for this project. 

“The country will benefit from world-class energy infrastructure ensuring value for money, further demonstrating the government’s commitment to prudent fiscal management.”

The Indian investor is expected to operate the transmission line for 30 years, and ensure long-term sustainability and efficiency, before transferring the project and all its assets to KETRACO.
 
“Before signing the agreement, KETRACO conducted comprehensive due diligence on Adani Energy Solutions as the project proponent, along with thorough stakeholder engagement. 

“This ensures that all concerns have been addressed and the project is primed for successful execution.”
 
The transmission lines and substations to be developed:
 
• 400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line: Spanning 208.73 km, this line will include new substations at Gilgil, Thika, and Malaa, as well as substantial extensions at Konza.
• 220kV Rongai-Keringet-Chemosit Line: Covering 99.98 km, this line will include substations at Rongai, Keringet, and Chemosit.
• 132kV Menengai-Ol Kalou-Rumuruti Line: A 89.88 km line with substations at Menengai, Ol Kalou, and Rumuruti.
• 400/220kV Substation at Lessos: Critical for supporting the 400kV transmission network and enhancing regional power stability.
• 132/33kV Substation at Thurdibuoro: Expanding the local distribution grid, providing much-needed power to underserved areas.