Kenya Awards $1.3B Power Transmission Deal to Adani, Africa50

18 Sep 2024 CW Team

Kenya has awarded a significant public-private partnership (PPP) concession to the Indian conglomerate Adani Group and Africa50, a unit of the African Development Bank, for the construction of power transmission lines. The deal, valued at $1.3 billion, was disclosed by David Ndii, chief economic advisor to President William Ruto, in a post on X.

According to Ndii, the concession involves KETRACO, Kenya’s power transmission utility, and represents a major investment without the need for additional borrowing. “The government through KETRACO has awarded PPP concessions to Adani and Africa50 to build new transmission lines,” Ndii wrote. “They are hiring their project teams. The cost of these transmission lines is $1.3 billion that we do not have to borrow.”

Africa50, an infrastructure investment arm of the African Development Bank, is expected to collaborate with Adani Group on this significant infrastructure project. However, neither Adani Group nor the African Development Bank immediately responded to requests for comment from Reuters.

The announcement comes amidst controversy over a separate Kenyan government initiative to lease Jomo Kenyatta International Airport to the Adani Group. This plan, involving a 30-year lease for $1.85 billion in investment to expand the airport, has faced backlash from Kenyans and triggered a strike by aviation workers. Adani Group, which operates several airports in India, has been criticized by opposition parties for allegedly receiving preferential treatment from Indian governments, although the group and Indian officials have denied such claims.

Kenya’s debt crisis, exacerbated by heavy infrastructure spending, has fueled public discontent. A recent proposal to increase taxes to manage the debt led to violent protests and forced the government to withdraw the plan.

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