Kenya has taken a major step toward strengthening its national electricity infrastructure with the signing of a Project Agreement between Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited. This partnership aims to develop, finance, operate, and maintain key transmission lines and substations across the country, addressing persistent power blackouts and supporting economic growth.
The project, estimated at KSh 95.68 billion (USD 736 million), will be financed through a competitive bidding process. The financing model includes both debt and equity, with the funds set to be repaid over a 30-year period. Notably, the project cost will be shared between KETRACO and Adani Energy Solutions, ensuring high value for money through the prioritization of local content and Kenyan business opportunities.
Impact on Power Distribution
This ambitious infrastructure project will include the development of several key transmission lines and substations that will drastically improve power distribution across the country. The following are some of the notable projects outlined:
- 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 extensions at Konza.
- 220KV Rongai-Keringet-Chemosit Line: Covering 99.98 km, this line will feature new substations at Rongai, Keringet, and Chemosit.
- 132KV Menengai-Ol Kalou-Rumuruti Line: This 89.88 km line will have substations at Menengai, Ol Kalou, and Rumuruti.
- 400/220KV Substation at Lessos: This will play a crucial role in supporting the 400KV transmission network.
- 132/33KV Substation at Thurdibuoro: Expanding local distribution to underserved areas.
Macroeconomic Benefits
This project directly aligns with the Kenyan government’s objective of expanding access to electricity across the nation. By minimizing transmission losses and addressing blackouts, the project is expected to:
- Empower communities by providing consistent and reliable power.
- Create jobs and stimulate economic growth, particularly at the grassroots level.
- Advance Kenya’s Bottom-Up Economic Transformation Agenda, which emphasizes inclusive economic development.
The initiative also supports Vision 2030, Kenya’s long-term development plan aimed at transforming the country into an industrialized middle-income economy. The upgraded transmission lines and substations will boost industrial growth, facilitate regional integration, and ensure stable and reliable power for homes and businesses.
Financial Structure and Long-Term Sustainability
One of the key advantages of this project is that the Government of Kenya will not incur any financial expenditure. The project will be entirely financed by KETRACO and Adani Energy Solutions, who will manage the transmission infrastructure for 30 years before transferring ownership and assets to KETRACO.
Adani Energy Solutions, a major player in global energy projects, brings its expertise in long-term management and sustainability. The project aims to ensure that Kenya benefits from world-class energy infrastructure while adhering to the government’s commitment to prudent fiscal management.
Commitment to Transformative Development
The government has affirmed its commitment to supporting the successful implementation of transformative energy projects like this one. By modernizing the country’s energy infrastructure, the project not only boosts the capacity of the grid but also contributes to Kenya’s broader economic and social transformation.
