Indian Billionaire Gautam Adani’s Energy Firm Advances Transmission Deal in Kenya

The Kenya Electricity Transmission Company (Ketraco) has confirmed that discussions are underway with Adani Energy Solutions, a subsidiary of India’s Adani Group, for the construction of three high-voltage power transmission lines.

The talks come after a presidential adviser previously hinted at finalized deals worth up to $1.3 billion.

However, Ketraco CEO John Mativo clarified on Monday that no formal agreements have been signed yet.

“There are still many boxes to tick,” Mativo said during a meeting with stakeholders in Nairobi. “We are focused on securing the best deal for this country.”

Revised Proposal and Costs

Adani’s initial proposal, presented last year, estimated the cost of constructing 388 kilometers (241 miles) of power lines at $1.01 billion.

Ketraco’s head of project development, Anthony Musyoka, revealed that the proposal has since been revised to $736.5 million.

Power Infrastructure Challenges

Kenya currently faces a $5-billion shortfall in funding for new power lines, requiring $250 million annually. Recent nationwide outages have underscored the urgent need for infrastructure improvements.

While Mativo acknowledged that the national grid has seen enhancements, he stressed that it remains insufficient to meet growing demands.

Adani’s proposed project includes a 206-kilometer line connecting Gilgil, Thika, Malaa, and Konza; a 95-kilometer Rongai-Keringet-Chemosit link; and a 98-kilometer Menengai-Ol Kalou-Rumuruti conduit.

Ongoing Negotiations

Negotiations are ongoing over financing terms, with Adani seeking an 11.5 percent debt cost and a 16 percent internal rate of return on equity, while Ketraco aims for a 9.5 percent debt cost and a 14 percent return.

Global Expansion by Adani Group

Gautam Adani, India’s second-richest man with a net worth of $101 billion, continues to expand the Adani Group’s global footprint, with its portfolio including energy, gas, ports, and green energy ventures.

The group’s planned $1.22-billion investment in Kenya’s power infrastructure, in collaboration with Africa50, reflects its commitment to global infrastructure growth.