Recent documents presented to the Senate reveal that the involvement of Adani Group in Kenya could extend beyond JKIA.
The group has also been proposed to manage the supply of electricity through the Kenya Electricity Transmission Company Limited (KETRACO) and KENGEN. And to operate the new Social Health Insurance Fund (SHIF).
During a Senate session, Roads and Transport Cabinet Secretary Davis Chirchir confirmed that KETRACO had received a proposal from the Adani Group for power transmission.
Adani Approved to Supply Energy Kenya
Despite Adani Group’s controversial global track record, its subsidiary, Adani Energy Solutions Limited (AESL), has received approval for a multimillion-dollar energy transmission project in Kenya.
This includes developing major transmission lines like the 400kV Loosuk-Lessos line, 220kV Kisumu-Musaga line, and new substations at locations including Loosuk, Kakamega, and Kibos.
The project was approved following a financial risk assessment by the PPP Committee. Costs were reportedly reduced from Ksh 132.13 billion (USD 897.09 million) to Ksh 108.46 billion (USD 736.51 million), a 17.9% reduction.
This is said to align closely with public sector cost estimates.
Concerning Adani Track Record
These developments have prompted concerns among many Kenyans.
The Adani Group has faced allegations of environmental damage, financial misconduct, and poor labor practices. A report by Hindenburg Research in 2023 accused Adani of stock manipulation and accounting fraud, leading to a sharp decline in its stock value.
Kenyan environmentalists fear that similar issues could occur in Kenya. Activists point to the Adani Group’s history of deforestation and displacement in India and worry about potential environmental and social impacts.
Labor unions in Kenya have also raised red flags over the potential treatment of workers on Adani-managed projects, citing past allegations of poor working conditions and labor rights violations at Adani facilities.
Nelson Amenya, the Adani-JKIA deal whistleblower has urged caution: “Adani’s history of corruption, environmental harm, and human rights abuses is a serious warning for Kenya. We must be careful about partnering with such a corporation.”
Budgetary constraints have forced the Kenya Kwanza government to seek private investors for key projects. But, many Kenyans are worried about the risks of these deals. They are urging the government to be more transparent and to put strong protections in place for the environment, the economy, and workers’ rights.
By Vivian K.
