Adani Energy Signs 741 Million Power Deal With Kenya Amid Controversy

Adani Energy Solutions, a subsidiary of Adani Group conglomerate led by Indias second-richest man Gautam Adani, has finalized a 736 million agreement with the Kenya Electricity Transmission Company Limited KETRACO. This partnership is aimed at bolstering Kenya's power infrastructure and underscores Adani's expanding presence in Africa.

The agreement entails the construction of 388 kilometers of high-voltage transmission lines, with Adani assuming operational responsibilities for the next 30 years. Upon completion of this period, ownership of the infrastructure will revert to KETRACO.

Valued at approximately Ksh95.68 billion 741 million, the project will be financed through a mix of debt and equity. The Kenyan Ministry of Energy confirmed the agreement following four months of intensive negotiations, emphasizing the importance of this investment for the country's energy landscape.

This initiative aligns with Adani's broader strategic objectives in Kenya, which include a contentious bid for a 30-year concession to manage Jomo Kenyatta International Airport JKIA. This proposal has attracted scrutiny, particularly regarding transparency in the bidding process and its implications for public trust in government decision-making.

However, the arrangement has sparked controversy. A Kenyan organization has filed a lawsuit challenging the government's decision to award the contract, citing concerns over insufficient public involvement and a lack of transparency throughout the process. Additionally, the Commission for Human Rights and Justice has called for KETRACO to disclose the specifics of the agreement, a demand that is currently subject to judicial review.