Energy and Petroleum Cabinet Secretary, Opiyo Wandayi, has reaffirmed that the Kenya Electricity Transmission Company Limited (KETRACO) will continue its project with Adani Energies Solutions, despite the company facing fraud charges in the United States.
Wandayi stressed that the Kenyan government had conducted thorough due diligence before entering into the agreement with Adani.
He pointed out that the company’s technical, legal, and financial capabilities had been rigorously assessed.
Adani has been indicted in New York for allegedly participating in a multibillion-dollar fraud scheme. U.S. prosecutors claim the company paid over $250 million (Sh32 billion) in bribes to Indian officials in order to secure solar energy contracts between 2020 and 2024.
Speaking before the Parliamentary Energy Committee about the controversial Sh95 billion KETRACO-Adani deal, Wandayi explained that the government had carried out a two-phase due diligence process.
The review included a comprehensive examination of Adani’s technical capacity, legal compliance, and financial standing, all of which met the criteria for undertaking major infrastructure projects.
The CS defended the deal, saying that when the agreement was made, Adani had successfully passed the due diligence checks, demonstrating a credible track record in similar projects.
“The first phase involved a thorough document review to confirm Adani’s technical, financial, and logistical capacity. They also provided proof of their legal standing, including compliance with Indian tax laws and regulations,” Wandayi stated.
He emphasized that the U.S. bribery allegations had not surfaced at the time KETRACO approved the deal, and as such, they would not impact the ongoing project in Kenya.
Under the deal, Adani will manage the transmission lines and substations it constructs for a 30-year period, after which all assets will be transferred to KETRACO in good condition and free of encumbrances.
The build-own-operate-transfer (BOOT) arrangement includes the development of a 400-kilovolt transmission line from Gilgil through Thika and Malaa to Konza, spanning 208.73 kilometers, with new substations in Gilgil, Thika, and Malaa.
A second 220-kilovolt line will be built from Rongai to Keringet and Chemosit, covering 99.98 kilometers and featuring new substations at Rongai, Keringet, and Chemosit.
KETRACO’s substation in Kimuka.
Additionally, a third 132-kilovolt transmission line will stretch from Menengai through Ol Kalou to Rumuruti, covering 89.89 kilometers, with a new substation to be constructed along the route.
