The government is in negotiations with an Indian company and an investment platform established by African governments and the African Development Bank to replace the Adani Group. To meet legal requirements, the government is accelerating talks on compensation and other aspects of the project.
According to information from Kenya Electricity Transmission Company Limited (KETRACO), the two companies are set to sign the agreement next month.
In a notice issued by KETRACO on Friday, February 28, Africa50, the investment vehicle under the AfDB, and the Power Grid Corporation of India Limited (POWERGRID) initiated the Privately Initiated Proposal (PIP). The Ksh45 billion deal aims to develop, finance, construct, and operate two key transmission lines.
The two transmission lines include the approximately 179-kilometre, 400kV Lessos-Loosuk Transmission Line, which seeks to enhance power system reliability and promote electricity access in the Western region.
The other line set to be built under the deal is the 220kV Kisumu-Kakamega-Musaga Transmission Line, which spans about 73 kilometres. This line is designed to improve the efficiency of power distribution in the area.
The construction of these transmission lines is anticipated to take two years upon commencement.
KETRACO on Friday invited Kenyans to submit comments on the deal before it is signed. “KETRACO will hold a joint national public participation forum on 19 March 2025 at the City Hall Annex in Nairobi from 9:00 am,” KETRACO said.
It added: “Members of the public, civil society organisations, non-governmental organisations, professional bodies, people with disabilities, youth, women's groups, and all stakeholders are invited to attend and participate.”
KETRACO is seeking comments on several key aspects related to the national transmission infrastructure strategic plans. These include public-private partnerships (PPPs) in electricity transmission projects, the environmental and social impacts of these initiatives, and compensation for individuals affected by such projects—covering structures and crops.
Additionally, KETRACO is requesting input on the proposed benefits and challenges associated with each project. It is also seeking recommendations for improvements to ensure that the strategic plans effectively address the concerns of all stakeholders involved.
In September last year, KETRACO awarded a $1.3 billion concession to a consortium comprising the Adani Group and Africa50. This partnership aimed to construct new power transmission lines to strengthen the country's power distribution network without incurring additional public debt.
However, in November, President William Ruto cancelled the Ksh90 billion deal with the Adani Group due to concerns over transparency and allegations of corruption involving Adani's executives.
Following this development, KETRACO engaged with POWERGRID and Africa50 to proceed with the project under the PPP framework.
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