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Reading: Adani-KETRACO deal will proceed despite US fraud charges, CS Wandayi insists
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Adani-KETRACO deal will proceed despite US fraud charges, CS Wandayi insists

Brian Situmo
Last updated: November 21, 2024 3:20 pm
Brian Situmo 7 months ago
President Ruto chatting with CS Wandayi.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has reiterated that the Kenya Electricity Transmission Company Limited (KETRACO) will continue its partnership with Adani Energy Solutions, despite the company facing fraud charges in the United States.

Wandayi emphasized that the Kenyan government conducted extensive due diligence before signing the agreement with Adani.

Speaking before the Parliamentary Energy Committee, the CS outlined that the government had carefully assessed the company’s technical, legal, and financial capabilities prior to the deal.

He pointed out that Adani’s qualifications had been rigorously reviewed and met all the criteria necessary for undertaking large-scale infrastructure projects in Kenya.

Adani has been indicted in New York for allegedly engaging in a multibillion-dollar fraud scheme, including claims of paying over $250 million (Sh32 billion) in bribes to Indian officials between 2020 and 2024 in exchange for solar energy contracts.

Read Also: Billionaire Gautam Adani charged in US over alleged $250M bribery scheme

However, Wandayi made it clear that the bribery allegations were not part of the due diligence process at the time the agreement was made and will not affect the ongoing project.

The CS explained that KETRACO’s decision to proceed with the Sh95 billion deal was based on two phases of thorough checks.

Billionaire Gautam Adani.

“The first phase involved a comprehensive document review to verify Adani’s technical, financial, and logistical capacity, as well as proof of their legal standing, including compliance with Indian tax laws,” he said.

“At the time of the deal, Adani passed all required checks and had a credible track record in similar projects.”

Wandayi defended the deal, reiterating that the bribery allegations surfaced after the agreement had been finalized, and as such, they would not interfere with the ongoing projects in Kenya.

Under the terms of the deal, Adani will manage the construction and operation of transmission lines and substations for a 30-year period. After this period, all assets will be handed over to KETRACO in good condition and free of encumbrances.

The project includes the development of a 400-kilovolt transmission line from Gilgil through Thika and Malaa to Konza, covering 208.73 kilometers, with new substations in Gilgil, Thika, and Malaa.

Additionally, a 220-kilovolt line will run from Rongai to Keringet and Chemosit, covering 99.98 kilometers, with new substations at Rongai, Keringet, and Chemosit.

Ketraco-run substation.

A third 132-kilovolt line will stretch from Menengai through Ol Kalou to Rumuruti, covering 89.89 kilometers and including a new substation along the route.

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