The National Treasury of Kenya has given the green light to significant Public-Private Partnership (PPP) agreements with Adani Energy Solutions and Africa50, aiming to enhance the nation’s electricity transmission infrastructure. These projects, valued at a combined $1.22 billion (KES 158.24 billion), are set to address the pressing issues of power outages and an aging transmission network.
Adani Energy Solutions, a subsidiary of the Adani Group, will undertake the construction of several key transmission lines and substations. The project includes a 206-kilometer 400kV Gilgil-Thika-Malaa-Konza line, a 95km 220kV Rongai-Keringet-Chemosit line, and a 70km 132kV Menengai-Olkalou-Rumuruti line. Additionally, Adani will build a 400/220kV substation in Lessos and other facilities in Rongai, Nakuru, and Thurdibuoro. The total cost for the Adani projects is estimated at $907 million (KES 117.62 billion).
Meanwhile, Africa50, an investment platform owned by the African Development Bank and African governments, will focus on constructing a 400kV transmission line from Loosuk to Lessos, spanning 177km, and a 64km 220kV line from Kisumu to Musaga. This project also includes building new substations and extending existing ones in Kakamega, Lessos, Musaga, and Kibos. The Africa50 projects are projected to cost KES 313.25 million (KES 40.62 billion).
The National Treasury has emphasized the importance of these projects in stabilizing Kenya’s electricity supply, particularly in the western regions where power rationing has been necessary due to load capacity issues. The Treasury’s Budget Policy Statement noted that these infrastructure upgrades are crucial to reduce the frequency of power outages and support the country’s growing electricity demands.
The approval of these PPP deals follows a directive from Parliament, which advocated for the PPP model to alleviate the financial burden on the Exchequer. With Kenya’s debt obligations, particularly to China, consuming a significant portion of revenue, the PPP model provides a viable solution for funding capital-intensive projects without increasing national debt.
These projects by Adani Energy Solutions and Africa50 represent a strategic move to modernize Kenya’s power infrastructure, ensuring a more reliable and efficient electricity supply to support economic growth and development. The completion of these projects is expected to alleviate the current strain on the transmission network and significantly cut down on the duration and frequency of blackouts.
