India’s Adani Secures $736M Contract for Kenya Power Transmission Build-out

India’s Adani Group has signed a $736-million 30-year public-private partnership contract for the financing, construction, operation and maintenance of 276 km (171 miles) of power transmission lines and three substations in East Africa.

The agreement was signed by Adani’s power transmission subsidiary Adani Energy Solutions Ltd. and the Kenya Electricity Transmission Co. (KETRACO), a state-owned firm that plans, designs, constructs, owns, operates and maintains 4,127 km (2,564 miles) of electricity transmission infrastructure across Kenya. 

“This agreement marks the beginning of transformative initiative to develop, finance, construct, operate and maintain key power transmission lines and substations across Kenya,” Opiyo Wandayi, Kenya’s cabinet secretary for energy and petroleum, said last month.

In one of the first major projects of the contract, Adani will construct the 206-km (128-mile), 400-kV Gilgil-Thika-Malaa-Konza power transmission line to serve areas around Kenya’s capital, Nairobi.

The transmission line is split into three phases along the 113-km (70-mile) Gilgil-Thika, 21-km (13-mile) Thika-Malaa and 65-km (40-mile) Malaa-Konza segments. The project also includes construction of the 132-kV Thurdiburo substation and another 400/220/132kV station at Rongai. A construction start date has not been announced.

When completed, the new power transmission lines would enhance the reliability of Kenya’s power supply, reduce transmission loses and address cases of low voltages and enhance East Africa’s regional power market.

Adani Energy Solutions Ltd. will also develop the 70-km (43-mile), 132-kV Menengai-Olkalou-Rumuruti double-circuit transmission line that will provide a grid connection for the Menengai geothermal power project that has an estimated generating potential of 1,600-MW. Begun in 2009, the geothermal project is being delivered in five phases by Geothermal Development Co., a state-owned agency which develops geothermal sites and sells the power to state utility Kenya Electricity Generating Co. PLC (KenGen) and private investors.

Development Bank Advances Other Transmission Work

Separately, KETRACO has tapped Africa50, the infrastructure arm of the African Development Bank, to construct two additional power transmission lines.

The Africa50-led project entails the development, financing, construction and operation of the 177-km (110-mile), 400-kV Lessos–Loosuk line and the 64-km (40-mile) 220-kV Kisumu–Musaga line.

“Once completed, the project will be the first independent power transmission in Kenya and set a reference point in Africa as the first financing of transmission lines on a PPP basis,” Africa50 said in a statement.

The government of Kenya approved the development of both lines earlier this year.

Back in 2022, Africa50 announced a joint development agreement with another India-based firm, Power Grid Corp. of India Limited (POWERGRID), to develop two transmission lines in the Kenya Transmission Project under a public-private partnership basis. 

Furthermore, Africa50 will develop associated infrastructure such as substations including a new 400-kV switch station at Loosuk, a new substations 220/33kV at Kakamega and substation extensions at Lessos, Musaga and Kibos.

Kenya, which has experienced frequent electricity blackouts, expects a spike in peak load demand of 21,075 MW by 2033 from the 1,606 MW reported in 2013. 

The government has been keen on increasing generation capacity by approximately 22,000 MW by the end of 2033, according to official reports.

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