India’s Adani Group will pay the Kenyan government a KES 1 billion ($8 million) success fee after securing a KES 95 billion ($736 million) contract to upgrade the country’s power infrastructure.
The deal, announced by Kenya’s Energy Ministry, will see Adani Energy Solutions construct and maintain crucial transmission lines and substations over a 30-year period.
Under the agreement, Adani will build a 400-kilovolt transmission line spanning 208.73 km from Gilgil to Konza, along with new substations in Gilgil, Thika, and Malaa. The company will also construct a 220-kilovolt line covering 99.98 km from Rongai to Chemosit and a 132-kilovolt line stretching 89.89 km from Menengai to Rumuruti.
The project aims to address Kenya’s frequent power outages, which have been blamed on aging infrastructure.
Energy Cabinet Secretary Opiyo Wandayi said: “Kenya will not bear any financial burden for this project.”
The deal follows a build-own-operate-transfer (BOOT) model, meaning Adani will hand over the assets to the Kenya Electricity Transmission Company Limited (KETRACO) after three decades.
Adani faces a tight 24-month deadline to complete the works, with KETRACO empowered to terminate the agreement if timelines are not met.
The Indian conglomerate will finance the project through a mix of debt and equity at a 70:30 ratio, shielding Kenyan taxpayers from direct costs.
To boost local business, the contract requires Adani to use competitive bidding for sub-contracts, potentially creating opportunities for Kenyan firms.
An independent expert appointed by KETRACO will oversee the project’s implementation to ensure transparency and compliance.
The deal comes as Kenya seeks to modernise its power grid and attract foreign investment. However, it also raises questions about the growing influence of Indian conglomerates in Africa’s infrastructure sector.
Adani Group, led by billionaire Gautam Adani, has faced scrutiny in recent years over its rapid expansion and allegations of stock manipulation, which the company denies.
For Kenya, the success of this project could determine whether similar public-private partnerships become a model for future infrastructure development in the country.
