NAIROBI, Kenya, Nov 23 – Energy and Petroleum Cabinet Secretary Opiyo Wandayi has revealed that Kenya Electricity Transmission Company Limited(KETRACO) deal with Adani Energies solutions will go on despite fraud charges in the United States as he emphasised that a comprehensive due diligence was conducted by the government.
Appearing before the Parliamentary Energy Committee over the controversial Ketraco-Adani deal CS Wandayi noted that the government conducted two phases of due diligence exercise on Adani including a documentary review process where the company demonstrated technical, legal and financial capacity for the construction of electricity transmission lines and substations.
“At the end of the day after two phases of the due diligence the contracting Authority :Kenya Electricity Transmission Company Limited (KETRACO) was of the view that the proponent, Adani passed the test following those two phases of dual diligence as provided in section 41 of the PPP Act,” he revealed.
Wandayi further asserted that the Indian based firm proved to the government that it has the logistical capacity to implement the project that will allow Adani to build and operate four transmission lines and two substations for 30 years before returning them to Kenya.
The Sh96 billion deal between the Energy Ministry and Adani Energy Solutions Limited was signed on October 12 2024 despite facing scrutiny, with Kenyans expressing concerns over the company’s previous operations in other countries.
“Therefore we are proceeding on the basis of the outcome of the very legalized dual diligence exercise that was undertaken by the contracting Authority in line with the law,” he said.
In defense of the partnership, President William Ruto stated that engaging with the private sector is crucial to unlocking the country’s resources and avoiding additional loans or tax increases.
Ruto emphasized the need for public-private collaboration, citing the success of such projects including the Nairobi Expressway as a notable example.
He stated that the deal between Adani Energies Solutions and KETRACO will see a reduction in cost of electricity across the country.
“The Adani Group is investing in the transmission lines ,it is important for us as a nation to appreciate that a partnership between Public and Private sector gives us a win-win outcome,” stated Ruto.
Key projects under the deal include construction of a 400kV Gilgil-Thika-Malaa-Konza line spanning 208.73 km and a 220kV Rongai-Keringet-Chemosit line covering approximately 100 km, alongside new substations in various locations.
