Kenya awards US $13bn contract for energy project

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Kenya awards US $13bn contract for energy project

The Kenya Electricity Transmission Co. (Ketraco) has awarded a significant public-private partnership (PPP) concession to Adani Group and Africa50, a unit of the African Development Bank (AfDB).

This partnership will focus on the construction of high-voltage power lines, with a total cost of US $1.3bn, which Kenya will not need to finance through additional borrowing. David Ndii, chairman of President William Ruto’s Council of Economic Advisers, announced the deal and said the funds for this project will come from private investments rather than state loans.

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Scope of work

The project will involve construction of the 185-kilometer (115-mile) Loosuk-Lessos transmission line and potentially other high-voltage links. This move is part of Kenya’s broader strategy to reduce reliance on state funding for infrastructure projects.

The Kenyan government is seeking to balance ongoing development needs with its financial constraints, aiming to leverage private investment to bridge a substantial funding gap projected at US $3bn by 2030. Meanwhile, Adani Energy Solutions Ltd. is also exploring opportunities to operate the Gilgil-Thika-Malaa electricity line, although this proposal is still under review.

Kenya’s energy mix predominantly consists of green energy with geothermal, hydro, wind, and solar accounting for 85% to 90% generation in 2023, according to different estimates. The remainder is filled by biomass, HFO plants, and imports.