Kenya’s Power Line Talks with Adani Energy Continue

The **Kenya Electricity Transmission Co.** (Ketraco) is still in the midst of discussions with **Adani Energy Solutions Ltd.** regarding the construction of three significant power lines. This news comes despite a statement from a presidential adviser claiming that Adani, along with another company, had already secured deals worth up to **$1.3 billion**.

Project Details & Budget Revisions

Last year, Adani expressed its interest in a substantial project involving the creation of 388 kilometres (or 241 miles) of high-voltage transmission lines. Initially estimated at **$1.01 billion**, the project’s cost was revised down to **$736.5 million** last month, as shared by **Anthony Musyoka**, Ketraco’s General Manager in charge of project development.

Statements from Leadership

During a recent meeting with stakeholders in **Nairobi**, **John Mativo**, Ketraco’s Chief Executive Officer, emphasized, “There are still many boxes to tick. We will get the best deal for this country.” Meanwhile, Adani has not yet responded to requests for comments on the ongoing negotiations.

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Controversy Surrounding Airport Concession

In addition to the power line talks, recent news has surfaced about **Adani** pursuing a 30-year concession to operate **Kenya’s largest airport**. This proposal has sparked outrage among many Kenyans, who argue that it bypasses procurement laws and attempts to evade scrutiny due to a lack of transparency.

Ongoing Evaluation Process

**Transport Secretary Davis Chirchir** reassured lawmakers that the privately initiated proposal is currently under evaluation. This reflects **Kenya’s** pressing need for infrastructure investment, as the nation grapples with a **$5 billion** financing gap—approximately **$250 million annually**—to support the development of new power lines. This year, the country has already faced two significant national outages, according to Mativo.

Infrastructure Improvements Needed

Despite improvements to the power grid, Mativo noted, “It’s not where it’s supposed to be.”

Details of Adani’s Proposal

Adani’s plan includes the construction of several key lines: a new 206-kilometre **Gilgil-Thika-Malaa-Konza** line, a 95-kilometre route connecting **Rongai-Keringet-Chemosit**, and about 98 kilometres dedicated to the **Menengai-Ol Kalou-Rumuruti** conduit.

Furthermore, Adani aims for an **11.5% cost of debt** and a **16% equity internal rate of return**. In contrast, Ketraco is looking for a more conservative **9.5% cost of debt** and a **14% IRR**, as highlighted by Mativo.

Additional Ventures on the Horizon

In a separate venture, a joint effort by **Africa50**—the infrastructure investment arm of the **African Development Bank**—and the state-supported **Power Grid Corp of India** has also proposed the construction of **273 kilometres** of new power lines throughout Kenya.