Kenya has greenlit a $907 million proposal from Adani Energy Solutions, the power distribution arm of India’s Adani Group, to construct transmission lines and substations in the country’s Eastern and Western regions.
Under a Public-Private Partnership (PPP), Adani Energy Solutions will build 371 kilometers of power lines and five substations.
This approval comes amid public backlash over a separate deal with Adani Airport Holdings to renovate and operate Jomo Kenyatta International Airport (JKIA). The Treasury noted that the feasibility study for the power project was completed and approved in May 2024, allowing it to move forward with contract negotiations.
The Adani power project aims to modernize Kenya’s ageing power distribution infrastructure, reducing leakages and frequent outages. However, Kenya’s reliance on PPPs for infrastructure projects has sparked concerns over transparency and inflated costs, especially as the country faces mounting debt.
The controversy surrounding Adani’s involvement in Kenya deepened after President William Ruto denied knowledge of the $1.85 billion JKIA concession, which was later confirmed by the Kenya Airports Authority (KAA). Despite public outcry, Kenya has not withdrawn from the airport deal, which grants Adani a 30-year concession of the country’s main airport.
Adani Group founder Gautam Adani, who has faced damaging corporate fraud allegations, continues to seek expansion into new markets. In 2023, Hindenburg Research accused the company of market manipulation and fraud, leading to a $140 billion sell-off of Adani stocks, though they have since recovered. Recently, Adani Group raised $1 billion in an equity sale with bids from US investors, marking its first fundraising effort since the scandal.
