A $1.3 billion Public-Private Partnership (PPP) deal for constructing power transmission lines in Kenya remains uncertain. The Kenya Electricity Transmission Company (KETRACO) clarified that negotiations are still ongoing, despite social media claims that the deal was finalized.
On September 14, President William Ruto's chief economic advisor, David Ndii, announced on X/Twitter that the government had awarded PPP concessions to Adani and Africa50 to build the new transmission lines, stating, "The government, through Ketraco, has awarded PPpconcessions to Adani and Africa50 to build new transmission lines. They are hiring theirproject teams. The cost of these transmission lines is $1.3 billion that we do not have toborrow."
However, KETRACO issued a statement two days later, emphasizing that discussions with Adani Energy Solutions and Africa50 are still underway for the construction of essential high-voltage transmission lines. "The projects are currently undergoing thorough risk assessments and legal reviews, with no contracts signed yet. KETRACO remains committed to full transparency and adherence to all regulatory processes," the statement noted.
The uncertainty surrounding the PPP contract arises as the Adani Group faces challenges in Kenya. Recently, hundreds of aviation workers protested against a proposed 30-year lease of Jomo Kenyatta International Airport to Adani, which would involve $1.85 billion in expansion costs, grounding planes and stranding passengers.
During a recent stakeholder engagement, KETRACO's Managing Director, John Mativo, mentioned that the company is seeking partnerships with firms like Adani Energy Solutions and Africa50 to address the financing gap in power transmission. He stated that these PPPs would facilitate the timely development of new transmission lines and enhance system stability.
On September 16, Kenya's Energy Cabinet Secretary, Opiyo Wandayi, indicated that over $5 billion is required to upgrade the country’s power transmission infrastructure over the next 20 years. The project aims to construct 371 kilometers of transmission lines and five substations in Eastern and Western Kenya, modernizing aging infrastructure and reducing outages.
In its draft Budget Policy Statement (BPS) for 2024, the Kenyan Treasury revealed that a feasibility study for the project was completed and approved in May 2024, paving the way for contract negotiations. Wandayi also noted that both Adani and Africa50 had submitted Privately Initiated Proposals (PIPs) for different sections of the transmission line, with the project expected to be completed by 2027.
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