The Kenyan government is in discussions with an Indian firm and an investment platform supported by African governments and the African Development Bank (AfDB) to take over the power transmission project previously awarded to the Adani Group.
As part of the legal process, the government is expediting negotiations on compensation and other key aspects of the project.
According to Kenya Electricity Transmission Company Limited (KETRACO), an agreement with the two companies is expected to be signed next month.
In a statement released on Friday, February 28, KETRACO confirmed that Africa50, an investment initiative under the AfDB, and the Power Grid Corporation of India Limited (POWERGRID) have proposed a Privately Initiated Proposal (PIP).
The Ksh45 billion agreement aims to finance, develop, construct, and manage two crucial electricity transmission lines to strengthen Kenya’s power infrastructure.
Key Transmission Lines Under the Deal
The first transmission line planned under this deal is the 400kV Lessos-Loosuk Transmission Line, which spans approximately 179 kilometers. This project is designed to improve the reliability of the electricity supply and boost access to power in Kenya’s Western region.
The second transmission line is the 220kV Kisumu-Kakamega-Musaga Transmission Line, stretching about 73 kilometers. This line aims to enhance power distribution efficiency in the region, ensuring a more stable and reliable electricity supply for businesses and households.
Once construction begins, the development of these power lines is expected to take two years to complete.
Public Participation Forum for Compensation Talks
KETRACO has invited the public to share their opinions and concerns regarding the project before the deal is finalized. A national public participation forum is scheduled for March 19, 2025, at City Hall Annex in Nairobi, starting at 9:00 am.
In its statement, KETRACO encouraged all Kenyans to take part in the discussions, including members of the public, civil society organizations, non-governmental organizations (NGOs), professional bodies, youth groups, women’s groups, persons with disabilities, and other interested stakeholders.
The government agency is seeking feedback on several key aspects of the national electricity transmission strategy. These include:
- The role of public-private partnerships (PPPs) in power transmission projects.
- The environmental and social effects of the planned transmission lines.
- Compensation for affected landowners, including payment for land, structures, and crops impacted by the construction.
- Potential challenges and benefits of the project.
- Recommendations to improve the transmission infrastructure while ensuring public concerns are addressed.
Background: Adani Group’s Exit and New Partnership
In September 2024, KETRACO awarded a $1.3 billion concession to a consortium led by the Adani Group and Africa50 to develop power transmission lines under a public-private partnership. This initiative aimed to expand Kenya’s electricity grid without increasing the country’s debt burden.
However, in November 2024, President William Ruto cancelled the Ksh90 billion deal with Adani Group over allegations of corruption and concerns regarding the project’s transparency.
Following this development, KETRACO engaged with POWERGRID and Africa50 to proceed with the project under a new agreement while maintaining the public-private partnership model.
With these new developments, the government is moving swiftly to ensure that the project continues without unnecessary delays while addressing concerns from the public, affected communities, and other stakeholders.
Join all Counties official Whatsapp Channel To Stay Updated On time https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
