Paul Arithi 
- Hon. Opiyo Wandayi ,CS Energy and Petroleum Signs Project Agreement for Development of Major Transmission Lines and Sub-Stations;
Ministry of Energy and Petroleum has announced successful signing of the Project Agreement between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited (the Project Company). This agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya.
All Kenyans are well aware of the significant challenge that our country faces with persistent power blackouts. These projects are designed to significantly enhance our national electricity infrastructure (transmission lines and substations), ensuring reliable and widespread access
to power that will support Kenya’s growing economy and development goals.
The signing of this agreement marks the conclusion of a long-negotiated process that has been ongoing for the past 4 months. As part of this infrastructure development, the Project Company will raise all the funding in form of debt and equity that will be repaid over the 30-
year period of the project agreement.
The project cost, that is currently estimated at KShs 95.68 Billion (USD 736m) will be crystallised through a competitive bidding process, that will be jointly handled by KETRACO and the Project Company, thus ensuring significant value for money for the country.
The competitive bidding process will prioritise local content and ensure that priority is on business opportunities for Kenyans
Government of Kenya will not incur any financial expenditure for the project. The country will benefit from world-class energy infrastructure ensuring value for money, further demonstratrating the government’s commitment to prudent fiscal management.
Adani Energy Solutions will manage the transmission line for 30 years, ensuring long-term sustainability and efficiency, and thereafter transfer the project and all its assets to KETRACO.
Before signing the agreement, KETRACO conducted comprehensive due diligence on Adani Energy Solutions as the project proponent, along with thorough stakeholder engagement.This ensures that all concerns have been addressed and the project is primed for successful
execution.
The Transmission Lines and Substations Being Developed:
400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line: Spanning 208.73 km, this line will include new substations at Gilgil, Thika, and Malaa, as well as substantial extensions at Konza.
• 220kV Rongai-Keringet-Chemosit Line: Covering 99.98 km, this line will include substations at Rongai, Keringet, and Chemosit.
• 132kV Menengai-Ol Kalou-Rumuru Line: A 89.88 km line with substations at Menengai, Ol Kalou, and Rumuru.
• 400/220kV Substation at Lessos: Critical for supporting the 400kV transmission network and enhancing regional power stability.
• 132/33kV Substation at Thurdibuoro: Expanding the local distribution grid, providing much-needed power to underserved areas.a
Macroeconomic Impact
This project is aligned with the Government’s objective of expanding access to electricity across the country, minimise transmission losses and address blackouts.This project will empower communities, create job opportunities, and stimulate economic activity at the grassroots level in different parts of the country.
This aligns with the Government’s BottomUp Economic Transformation Agenda, which seeks to ensure equitable economic growth and
development.Additionally, this project facilitates Vision 2030, Kenya’s long-term development plan to transition into a middle-income, industrialized nation. By enhancing electricity transmission capacity, the Government aims to support industrial growth and improve regional integration,ensuring stable and reliable power for industries and households across the country.
A National Priority This project underscores the Government of Kenya’s commitment to forming strategic partnerships that align with the country’s development goals.
The collaboration with Adani Energy Solutions ensures long-term management and maintenance of these vital infrastructure assets, securing the future of Kenya’s energy supply.
The Government remains commited to supporting the timely and successful implementation of transformative development projects such as this. The initiative will not only bolster our energy infrastructure but also contribute to the economic and social transformation of the country.
According to the statement from the Ministry
