On Thursday, President William Ruto stated that Kenya will significantly benefit from the power transmission agreement between Adani Group Holdings and the Kenya Electricity Transmission Company (KETRACO).
While officiating the groundbreaking for a 35MW power plant in Menengai, Nakuru County, Ruto emphasized that Kenya is proactively utilizing Public-Private Partnerships (PPP) to tap into its geothermal potential, which he believes will foster economic growth.
He noted that with the involvement of the controversial Adani Group and other private investors, Kenya aims to establish a national electric power grid by 2030 without imposing financial burdens on its citizens.
Not to burden Kenyans
“The Adani Group is investing Ksh. 95 billion of their own funds in the transmission line. Otherwise, we would have had to borrow that money, placing a burden on the people of Kenya,” Ruto stated.
President Ruto clarified that his government will compensate the investors through a negotiated willing charge.
He expressed confidence that this energy investment will generate jobs for the Kenyan youth and promote industrialization.
“This investment is not financed by the government; it is made by the private sector. They will contribute Ksh. 12 billion of their own funds into this project to generate energy, and we will purchase the energy from them,” he stated.
Ruto’s support for Adani follows the announcement by Energy and Petroleum Cabinet Secretary Opiyo Wandayi regarding the signing of a Ksh. 95.68 billion deal between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited.
CS Wandayi announced that the deal will enable the Indian company to develop, finance, construct, and operate essential transmission lines and substations across the country to address Kenya’s persistent power outages.
The 35MW power plant will be operated by Orpower TwentyTwo and is expected to supply power to the counties of Nanyuki, Meru, Nyeri, and others.
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Ruto highlighted that Kenya has only harnessed 950MW of geothermal energy out of a potential of nearly 10,000MW, indicating that there are significant opportunities still available.
Additionally, Kenya is expanding its geothermal operations in Olkaria, Eburru, and Baringo, where over 75MW has already been confirmed and will soon be integrated into the national grid.
