- India’s Adani Group will pay the Kenyan government a KES 1 billion ($8 million) success fee after securing a KES 95 billion ($736 million) contract.
- The deal follows a build-own-operate-transfer (BOOT) model, meaning Adani will hand over the assets to the Kenya Electricity Transmission Company Limited (KETRACO) after three decades.
India’s Adani Group will pay the Kenyan government a KES 1 billion ($8 million) success fee after securing a KES 95 billion ($736 million) contract to upgrade the country’s power infrastructure. The deal, announced by Kenya’s Energy Ministry, will see Adani Energy Solutions construct and maintain crucial transmission lines and substations over 30 years.
Under the agreement, Adani will build a 400-kilovolt transmission line spanning 208.73 km from Gilgil to Konza, along with new substations in Gilgil, Thika, and Malaa. The company will also construct a 220-kilovolt line covering 99.98 km from Rongai to Chemosit and a 132-kilovolt line stretching 89.89 km from Menengai to Rumuruti.
The project aims to address Kenya’s frequent power outages, which have been blamed on ageing infrastructure. Energy Cabinet Secretary Opiyo Wandayi said, “Kenya will not bear any financial burden for this project.”
The deal follows a build-own-operate-transfer (BOOT) model, meaning Adani will hand over the assets to the Kenya Electricity Transmission Company Limited (KETRACO) after three decades.
Adani faces a tight 24-month deadline to complete the works, with KETRACO empowered to terminate the agreement if timelines are not met. The Indian conglomerate will finance the project through debt and equity at a 70:30 ratio, shielding Kenyan taxpayers from direct costs.
The contract requires Adani to use competitive bidding for subcontracts to boost local business, potentially creating opportunities for Kenyan firms. An independent expert appointed by KETRACO will oversee the project’s implementation to ensure transparency and compliance.
The deal comes as Kenya seeks to modernise its power grid and attract foreign investment. However, it also raises questions about the growing influence of Indian conglomerates in Africa’s infrastructure sector.
Adani Group, led by billionaire Gautam Adani, has faced scrutiny in recent years over its rapid expansion and allegations of stock manipulation, which the company denies.
The success of this project could determine whether similar public-private partnerships become a model for future infrastructure development in Kenya.