Raila held a press conference in Mombasa, where he addressed critics’ concerns about transparency and investor integrity.
Former Prime Minister, Raila Odinga on Sunday, October 13 offered a surprise defence towards the involvement of Indian conglomerate Adani’s involvement in key infrastructure projects across Kenya, including the leasing deal involving the Jomo Kenyatta International Airport (JKIA).
Raila held a press conference in Mombasa, where he addressed critics’ concerns about transparency and investor integrity. He stressed the group’s track record and ongoing interest in Kenya, which dates back to 2010.
The controversy revolves around proposed Public-Private Partnerships (PPP) for the modernisation of JKIA and Kenya’s power transmission sector, with Kenyans heavily scrutinising the processes leading up to Adani’s involvement, but Raila defended the firm’s credibility by citing firsthand experience with their projects in India.
“When I was the Prime Minister of Kenya, I was introduced to Adani by Prime Minister Narendra Modi, who was then Chief Minister of Gujarat,” said Raila, who described a trip to Gujarat, where Adani had turned a swamp into a bustling port, power plant, and industrial hub.
A collage of Adani Group CEO Gautam Adani and the logo of his company. /INDIA TODAY
Adding “In Mumbai, I witnessed how they transformed a collapsing airport into a world-class facility, and their power projects benefit millions.”
Odinga emphasised that the group’s proposal to invest in Kenya was made over a decade ago, but was hampered by the absence of a legal framework for Public-Private Partnerships (PPPs) at the time.
He stated that Kenya’s PPP laws are based on those of India, specifically the state of Gujarat, where Adani has played a significant role in infrastructure development. However, he cautioned that the current framework must be improved in order to attract and retain investor confidence.
“There have been misgivings about how the PPP processes for JKIA and the energy sector have been handled, but we must ensure that Kenya remains an attractive destination for such investments,” Raila stated, adding “Adani is a credible partner. They have proven their capabilities in projects that surpass what we have seen in East Africa.”
The African Union Commission (AUC) chairperson candidate also urged the Kenyan government to address public concerns transparently and ensure that PPP processes are open, competitive, and fair.
While acknowledging the need for investor profits, Odinga emphasised the importance of safeguarding national interests, such as labour laws, environmental protection, and Kenyan courts’ jurisdiction in disputes.
“If we scare away investors like Adani, we risk stalling critical infrastructure development at a time when our neighbours are pulling ahead,” he warned, also urging all stakeholders to avoid politicising the issue and instead focus on keeping Kenya competitive in attracting foreign capital to fund its infrastructure needs.
“If we mishandle this, it could break our ability to develop for years to come,” he cautioned.
It is only two days ago that Kenya Electricity Transmission Company Limited (KETRACO) and Adani Foundation Energy Ltd inked a Ksh95.7 billion agreement to operate, and maintain transmission lines and substations for 30 years in a bid to curb power blackouts.
Despite concerns surrounding the Adani Group, which has been embroiled in various controversies, Energy CS Opiyo Wandayi defended the partnership, highlighting the critical need for enhanced electricity infrastructure to support Kenya’s burgeoning economy.
The Indian conglomerate has also proposed investing approximately $1.84 billion to expand and modernise Nairobi’s JKIA, a proposal submitted under the PPP model, that seeks to allow Adani to improve airport facilities, such as the construction of a new terminal, taxiways, and related infrastructure.
The project would be completed over 30 years under a Build-Operate-Transfer (BOT) agreement, after which the airport would be returned to the Kenya Airports Authority (KAA). However, the agreement has sparked considerable debate, considering that critics, including the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK), have argued that the proposal risks privatising a profitable national asset, transferring a significant portion of JKIA’s revenue to Adani during the concession period.