Kenya Electricity Transmission Company (KETRACO) has defended its partnership with Adani and Africa50 for the construction of a power transmission line, citing the need for private sector expertise to enhance Kenya’s power infrastructure.
KETRACO Managing Director John Mativo announced that the deal aims to bring private sector involvement into the development of high-voltage transmission lines, which are vital for stabilizing the country’s power supply and supporting economic growth.
Mativo explained that Kenya’s power transmission infrastructure has suffered from years of underinvestment, resulting in frequent blackouts that have hindered economic progress. The government has also been under financial strain due to rising public debt, making private-public partnerships (PPP) a necessary approach.
“Transmission infrastructure is costly and capital-intensive. Most of KETRACO’s projects have been financed by the exchequer and sovereign borrowing from Development Financial Institutions (DFIs),” Mativo said, adding that Kenya can no longer rely on borrowing due to competing social needs.
Mativo disclosed that the country faces a financial gap of around $5 billion (Sh650 billion) to meet its transmission infrastructure needs. To address this, KETRACO is implementing its Transmission Master Plan 2023-2042, which outlines the need for 5,672 kilometers of new high-voltage lines and expansion of the network by 9,605 kilometers.
Despite the ambitious plans, the deal with Adani has sparked concerns about transparency. Law firm IC Law Advocates has written to KETRACO, requesting access to crucial information about the partnership, highlighting growing public scrutiny over the controversial deal.