The Kenya Electricity Transmission Company Limited (KETRACO) has formalized a Project Agreement with Adani Energy Solutions Limited. According to Energy Cabinet Secretary Opiyo Wandayi, the project is valued at Sh95.68 billion (USD 736 million).

Under the agreement, Adani Energy Solutions will manage the transmission line for a period of 30 years, ensuring its efficiency and sustainability. After this period, the project and all its assets will be handed over to KETRACO.

Wandayi also noted that the agreement process has been in progress for the past four months.

“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),” Wandayi said.

“The agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya.”

The Cabinet Secretary noted that the project will significantly enhance the national electricity infrastructure, including transmission lines and substations.

He emphasized that this improvement will ensure reliable and widespread access to electricity, supporting Kenya’s growing economy and advancing its development goals.

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

Wandayi added that, as part of this infrastructure development, the Project Company will raise all the funding in the form of debt and equity that will be repaid over the 30 years of the project agreement.

“The project cost, which 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,” the CS said.

Wandayi highlighted that the competitive bidding process will prioritize local content and create business opportunities for Kenyans.

He also assured that the government will not bear any financial burden for the project, while benefiting from world-class energy infrastructure, ensuring value for money.

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The CS noted that KETRACO conducted thorough due diligence on Adani Energy Solutions before finalizing the agreement, underscoring the government’s commitment to transparency.

He added that the project exemplifies the government’s dedication to forming strategic partnerships that align with Kenya’s development goals. The collaboration with Adani Energy Solutions will ensure long-term management and maintenance of critical infrastructure, securing the country’s energy future.

“We believe this initiative will not only bolster our energy infrastructure but also contribute to the economic and social transformation of the country.”