Kenya has approved a $907 million proposal from Adani Energy Solutions, the power distribution arm of Indias Adani Group, to build transmission lines and substations in Eastern and Western parts of the country.
Adani Energy Solutions, which operates more than 21,000km of power distribution lines, will build 371km of lines and five substations under a Public Private Partnership (PPP). The deal comes as details of another agreement with Adani Airport Holdings to renovate and operate Jomo Kenyatta International Airport (JKIA) sparked public anger.
The project development or feasibility study report was completed, submitted, and approved in May 2024, for the project to progress to contract negotiations, Treasury said in its draft Budget Policy Statement (BPS).
The Adani power transmission project is part of efforts to revamp Kenyas ageing distribution lines to reduce leakages and frequent outages.
Kenya has turned to PPPs for infrastructure projects as mounting debt cut the governments spending on new roads, power lines, railways and airports. However, questions over the opacity of the process and the inflated costs of some of the projects have persisted.
