Kenya plans to utilize Public-Private Partnerships (PPPs) and development partner funding to improve its electricity infrastructure, following the collapse of a Sh96 billion deal with Adani Energy Solutions. Energy Cabinet Secretary Opiyo Wandayi emphasized the need to upgrade generation, distribution, and transmission systems, particularly as the country prepares for the Eastern Africa Power Pool (EAPP) regional energy trade next year.
The canceled Adani deal, which included building four transmission lines and two substations, was meant to enhance Kenya’s power capacity and address frequent blackouts. While Wandayi did not confirm the official cancellation, he stressed the ministry’s commitment to infrastructure development through alternative funding models like PPPs.
Development partners, including Power Africa, the African Development Bank (AfDB), and the World Bank, remain crucial to Kenya’s energy sector. Wandayi also highlighted efforts to lift the moratorium on Power Purchase Agreements (PPAs) imposed in 2021, which was intended to vet Independent Power Producers (IPPs) and reduce power bills.
The ministry continues to work with Parliament to lift the ban, aiming to expand Kenya’s energy generation capacity through new PPAs.
