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Kenya is grappling with a significant energy crisis. Ageing transmission lines and a lack of investment have led to frequent blackouts and power rationing, hindering economic growth and frustrating citizens. To address this challenge, the Kenya Electricity Transmission Company (Ketraco) has entered into a controversial Sh95.68 billion (USD 736 million) deal with Adani Energy Solutions, a subsidiary of the Indian conglomerate Adani Group.
The agreement, a public-private partnership (PPP), will see Adani build and operate three electricity transmission lines and two substations for 30 years before handing ownership to Ketraco345. While the project promises to improve Kenya’s power grid and increase electricity access, concerns about its financial implications, transparency, and Adani Group’s history have sparked public debate.
The project aims to construct a 208.73 km 400kV Gilgil-Thika-Malaa-Konza line, a 99.98 km 220kV Rongai-Keringet-Chemosit line, and an 89.88 km 132kV Menengai-Ol Kalou-Rumuruti line, along with substations at various locations. Proponents of the deal, including Energy and Petroleum Cabinet Secretary Opiyo Wandayi, argue that it will be transformative for Kenya’s energy sector, enhancing the national electricity infrastructure and ensuring reliable power supply. They emphasise that the PPP model allows the government to avoid incurring direct financial expenditure while benefitting from private sector expertise.
However, critics have raised several concerns. Documents show that the project’s total cost is Sh33.5 billion higher than Ketraco’s previous estimations3. This discrepancy, attributed to additional expenses like wayleaves, taxes, and project management, has fuelled anxieties about potential cost overruns and their impact on electricity tariffs for consumers. A Mombasa-based organisation has filed a lawsuit challenging the deal, alleging a lack of transparency and public participation in the bidding process1617. This concern echoes broader anxieties about PPPs, which often bypass conventional procurement methods and limit public scrutiny.
Adding to the controversy is Adani Group’s reputation. The conglomerate has faced allegations of bribery and stock manipulation, though it denies these claims20. A previous attempt by Adani to secure a concession to operate Jomo Kenyatta International Airport was met with opposition and ultimately suspended2122. The current power deal has prompted calls for greater transparency and accountability to ensure that the project serves Kenya’s interests and avoids potential pitfalls associated with large-scale infrastructure projects involving foreign investors.
The Adani-Kenya power deal represents a significant moment in Kenya’s efforts to address its energy challenges. While the potential benefits of the project are evident, addressing public concerns about transparency, cost, and the implications of partnering with a controversial multinational corporation is crucial for ensuring public trust and the project’s long-term success.
