Adani Energy Solutions Limited (AESL) on Friday, November 8, released more details on a subsidiary company it owns in Kenya aimed at expanding its power business in the country.
This is after the Ministry of Energy, through CS Opiyo Wandayi revealed that it had inked a Ksh95.68 billion project agreement with Adani through the Kenya Electricity Transmission Company Limited (KETRACO) under the Public-Private Partnership (PPP) programs.
“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's statement read in part.
AESL revealed that the company is called Progressive Grid Networks Ltd and its main aim would be to seek opportunities in power transmission projects.
According to a regulatory filing, the company has a share capital of ksh10 million that will be divided into Ksh100,000 ordinary shares with a normal value of Ksh1,000 each.
AESL will hold a 100 per cent equity share in the arm, which means that it holds total ownership of the new company.
The company is yet to begin operations in the country.
Despite the backlash Adani received from Kenyans, the energy subsidiary ended up bagging the deal that will see it undertake the maintenance of key electricity transmission lines and substations across the country for the next 30 years.
The project includes a 400 kV transmission line from Gilgil to Thika to Konza spanning 208.73 km, a 220 kV line from Rongai to Keringet to Chemosit extending 99.98 km, and a 132 kV line between Menengai and Rumuruti that also features a substation.
Additionally, a new 132/33 kV substation will be established in Kisumu.
Responding to the deal, Kenyans, including Kisii Senator Richard Onyonka raised concerns about transparency, the exploitation of Kenyan taxpayers, and the potential rise in electricity bills.
Meanwhile, President Ruto challenged Kenyans to welcome such PPP projects as they were a way for Kenya to benefit from developments without overburdening Kenyans with taxes.
