The Kenya Electricity Transmission Company Limited (Ketraco) has signed a Project Agreement with Adani Energy Solutions Limited.
Energy CS Opiyo Wandayi said the project is estimated to cost Sh95.68 billion (USD 736m).
Adani Energy Solutions will manage the transmission line for 30 years, ensuring long-term sustainability and efficiency, and after that transfer the project and all its assets to KETRACO.
Wandayi said the signing of the agreement process has been ongoing 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 CS said that the project will enhance the national electricity infrastructure (transmission lines and substations.
This, he said, will ensure reliable and widespread access to power that will support Kenya’s growing economy and 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 said the competitive bidding process will prioritise local content and business opportunities for Kenyans.
The CS said that the government will not incur any financial expenditure for the project adding that it will benefit from world-class energy infrastructure ensuring value for money.
He said that Ketraco conducted comprehensive due diligence on Adani Energy Solutions as the project proponent before signing the agreement.
Wandayi said the project underscores the government’s commitment to forming strategic partnerships that align with the country’s development goals.
He said the collaboration with Adani Energy Solutions ensures long-term management and maintenance of these vital infrastructure assets, securing the future of Kenya’s energy supply.
“The government remains committed to supporting the timely and successful implementation of transformative development projects such as this,” he said.
“We believe this initiative will not only bolster our energy infrastructure but also contribute to the economic and social transformation of the country.”