Kenya In Talks With New Partners for Power Grid After Adani Exit

The Kenya Electricity Transmission Company (KETRACO) tapped into the expertise of Power Grid Corporation of India and Africa50, two global firms, in the wake of Adani’s exit from the country.

The two firms are set to be the major players in Public Private Partnerships (PPPs) with the government; providing critical funding and expertise as the government aims to implement a 100 per cent transition into renewable energy by 2030.

Confirming the new partnership, Africa50, a pan-continental infrastructure investor, is set to provide funding for the partnership. This, according to Chief Executive Officer Alain Ebobissé, will be Africa’s first  large-scale PPP on electricity transmission line.

While it is unclear the amount that Africa50 is set to provide, the funding is set to seemingly stem from a $500 million (Ksh 64.6B) kitty set aside by the company to invest in climate-friendly power projects.  

Ebobissé noted that the fund will comprise a $400 million (Ksh 51.7B) component for project development, another $100 million (Ksh 12.9B) for project preparation, and will target sectors ranging from renewable energy to transport that limits greenhouse-gas emissions.

Power Grid Corporation of India is a global public sector company that transmits power across India, commanding a vast chunk of the country’s power system. 

Aside from providing power in India, Power Grid provides consultancy services in core areas such as power transmission projects, sub-transmission systems, distribution management, load dispatch & communications.

 Through its consultancy services, Power Grid has footprints in 23 countries worldwide with a strong foothold in South Asia, Central Asia, Africa & Europe.

The entry of the two firms comes after President William Ruto’s cancellation of the Ksh90 billion Adani-KETRACO deal that left the government’s ambitious electricity projects in limbo.

Speaking on Thursday, November 21, 2024 during his State of the Nation address in Parliament, the Head of State revealed that his directive was influenced by the provision of undisputed evidence or credible information on corruption.

According to Ruto, the decision to stop the government’s contractual engagements with the Adani Group stemmed from key transparency considerations that the deal had violated. 

Prior to Ruto’s cancellation of the Adani deal, directors of the Indian conglomerate were indictment in an ongoing case at the United States of America’s federal court over a Ksh32 billion corruption allegation.

Gautam Adani, the group CEO, along with seven other executives in the multibillion-dollar company, were indicted by the Department of Justice (DOJ) in New York for bribing Indian government officials.

According to the indictment, the Adani Group has for years bribed officials to lie to US investors and acquire green energy supply contracts for the group’s Adani Green subsidiary.