President Ruto defends Adani's Ksh.95 billion power deal

Speaking during the groundbreaking for the establishment of a 35MW powerplant in Menengai, Nakuru County, Ruto said that Kenya is assertively leveraging on Public-private Partnerships (PPP) to unlock its geothermal potential which he believes will drive economic growth.

He said that with the help of controversy-linked Adani and other private investors, Kenya will achieve its goal of wiring a national electric power grid by 2030 without burdening its citizens.

"The Adani group are investing Ksh.95 billion of their money in the transmission line. We would have otherwise gone to borrow that money and burden the people of Kenya," said Ruto.

President Ruto clarified that his government will only pay the investors using a willing charge that has already been negotiated.

He expressed confidence that the energy investment will create jobs and expand industrialisation.

"This investment is not funded by the government this is an investment by the private sector. They will put Ksh.12 billion of their money in their project to generate energy and we will buy the energy from them," he said. 

Ruto's defense of Adani comes after Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced the signing of a Ksh.95.68 billion deal between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited.

CS Wandayi stated that the deal will see the Indian company develop, finance, construct, and operate critical transmission lines and substations across the country to tame Kenya’s chronic power outages.

The 35MW power plant will be managed by Orpower TwentyTwo and is set to transmit power to counties of Nanyuki, Meru, Nyeri and other counties.

Ruto noted that Kenya has so far tapped only 950MW of geothermal out of a potential of nearly 10,000MW, leaving immense opportunities still untapped. 

Kenya is also expanding its geothermal operations in Olkaria, Eburru, and Baringo, where over 75MW have already been proven and will soon be added to the national grid.