Adani targets 4 projects in Kenya's multi-billion electricity transmission plan

Energy and Petroleum Cabinet Secretary James Opiyo Wandayi has addressed concerns regarding the engagement between the government and India's Adani Energy Solutions Limited.

The CS was speaking on Monday at a public participation event held at the Kawi Complex, Nairobi, aimed at shedding light on public-private partnerships (PPPs) in the energy sector.

This development follows public outcry over Adani Group's involvement in the takeover of Jomo Kenyatta International Airport (JKIA), which sparked significant opposition.

CS Wandayi emphasised the necessity of private sector involvement in Kenya's energy infrastructure development, particularly in light of the significant financing gap in the country's 20-year Transmission Master Plan.

The total investment requirement for this plan is estimated at $5.3 billion, but so far, only $305 million has been secured, leaving a gap of $5 billion.

“The challenges we face today require us to think beyond traditional financing methods,” stated Wandayi, as he highlighted the need for innovative funding solutions through PPPs.

Energy CS Opiyo Wandayi speaking at a public participation event held at the Kawi Complex, Nairobi Energy CS Opiyo Wandayi speaking at a public participation event held at the Kawi Complex, Nairobi Pulse Live Kenya

Why Adani?

Wandayi said that Adani Energy Solutions Limited has proposed to build transmission lines in Kenya.

He noted the company's vast experience in power transmission, with a cumulative network of over 21,000 circuit kilometers in India.

"They privately own more energy infrastructure than Kenya, Uganda and Tanzania combined. In distribution, Adani serves over 13 million consumer meters in metropolitan Mumbai and the industrial hub of Mundra SEZ," he said.

In Kenya their current project proposal covers the following:

Approximately 222 km 400 kV Gilgil-Thika-Malaa-Konza transmission line and associated substations.
400/220/132kV substations at Rongai and approximately 99km 220kV D/C Rongai-Keringet-Chemosit transmission line and associated substations.
Approximately 98km 132kV Menengai-OI Kalou-Rumuruti transmission line and associated substations.
132/33kV Thurdibuoro substation.

The CS stated that these projects are essential for reinforcing the aging transmission systems and enhancing the evacuation of renewable energy sources such as wind and geothermal power.

READ: JKIA takeover deal: 7 airports managed by proposed investor Adani Airports

Energy CS Opiyo Wandayi speaking at a public participation event held at the Kawi Complex, Nairobi Energy CS Opiyo Wandayi speaking at a public participation event held at the Kawi Complex, Nairobi Pulse Live Kenya

Addressing Public Concerns

Wandayi acknowledged the concerns raised by stakeholders regarding the choice of Adani and the lack of an open tender for the projects.

He reassured the public that due diligence is being carried out in line with Section 41 of the PPP Act, 2021.

An evaluation committee has been established to review the proposals and conduct thorough due diligence on the private parties involved.

The CS defended that the choice to bypass the open tender system was an opportunity to fast-track critical infrastructure development.

Energy CS Opiyo Wandayi speaking at a public participation event held at the Kawi Complex, Nairobi Energy CS Opiyo Wandayi speaking at a public participation event held at the Kawi Complex, Nairobi Pulse Live Kenya

“Our fiscal space for taking on new loans has become increasingly limited. We need innovative solutions, and the private sector has the capital, expertise, and capacity to deliver these projects efficiently,” said Wandayi.

He added that the shift to PPPs is a strategic move to enhance infrastructure, boost economic growth, and meet future energy demands.