The Kenyan government is inviting private investors to fund a $245 million (Ksh31.7 billion) high-voltage transmission line project, aiming to replace a controversial deal with India’s Adani Group that was scrapped in November 2024. The cancellation followed the indictment of Adani’s director, Gautam Adani, in a $250 million (Ksh32.4 billion) bribery case in the United States, prompting President William Ruto to halt the Ksh95 billion agreement with Adani Energy Solutions.
The new project, set to begin in 2026 and conclude by 2029, involves constructing four power lines to bolster Kenya’s aging electricity infrastructure. The initiative is part of a broader push to bridge a $5 billion (Ksh647 billion) financing gap for power transmission projects, as outlined in a Bloomberg report. The Kenya Electricity Transmission Company (KETRACO) is spearheading the effort, targeting universal electricity access by 2030 through rural last-mile connections and upgrades to outdated lines.
Energy Cabinet Secretary Opiyo Wandayi, who initially championed the Adani deal, had defended it on October 11, 2024, citing rigorous due diligence under the Public Private Partnership (PPP) Act. “The PPP Directorate and KETRACO conducted a two-phase due diligence on Adani Energy Solutions,” Wandayi stated, emphasizing the deal’s potential to transform Kenya’s power grid. However, public opposition and the U.S. indictment led to its abrupt termination.
In addition to seeking new investors for the $245 million project, Kenya is negotiating with the Power Grid Corporation of India and the African Development Bank’s Africa50 for two additional power lines costing $319 million (Ksh41 billion). These efforts align with KETRACO’s Transmission Master Plan 2023-2042, which calls for 5,672 kilometers of new high-voltage lines to meet rising demand and curb frequent blackouts.
The shift to private investment reflects Kenya’s struggle to fund capital-intensive infrastructure amid a cash-strapped treasury. While the government aims to stabilize the power supply and drive economic growth, public scrutiny of PPP deals remains high, fueled by concerns over transparency and past controversies like the Adani saga.
