Kenya Seals Ksh95 Billion Power Deal with Adani – Here’s What It Means
Adani Energy Solutions Limited (AESL) revealed further insights into its Kenyan subsidiary, Progressive Grid Networks Ltd, as it seeks to expand its energy footprint in Kenya. This announcement followed the Ministry of Energy’s disclosure of a significant Ksh95.68 billion partnership, facilitated by the Kenya Electricity Transmission Company Limited (KETRACO) under the Public-Private Partnership (PPP) program.
On Friday, November 8, Cabinet Secretary for Energy Opiyo Wandayi shared news of the recently signed agreement. “I am pleased to announce the successful signing of the Project Agreement between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited (AESL) on Wednesday, October 9, 2024,” Wandayi stated.
Progressive Grid Networks Ltd, the newly registered subsidiary with a Ksh10 million share capital, will focus on advancing power transmission projects. AESL holds a 100% equity stake in the company, providing complete ownership over its operations in Kenya. Although the firm has yet to initiate its operations, it is strategically positioned to oversee the maintenance of vital transmission lines and substations across the country for the next three decades.
This ambitious project includes a 400 kV transmission line linking Gilgil, Thika, and Konza over 208.73 km, a 220 kV line from Rongai to Keringet to Chemosit spanning 99.98 km, and a 132 kV line with a substation from Menengai to Rumuruti. Additionally, Kisumu will soon see the establishment of a new 132/33 kV substation.
Despite Adani’s success in securing this project, the partnership has sparked mixed reactions among Kenyans. Public concerns were voiced by figures like Kisii Senator Richard Onyonka, who raised questions over transparency, the potential burden on taxpayers, and fears of rising electricity bills.
In response, President William Ruto urged Kenyans to embrace such PPP initiatives, emphasizing that they enable national development without significantly increasing tax burdens. He described these projects as a sustainable way to stimulate growth while managing fiscal responsibilities.
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Kenya Seals Ksh95 Billion Power Deal with Adani – Here’s What It Means
