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Kenya has awarded a public-private partnership concession for Adani’s Power Lines Construction in Kenya that will foresee the construction of build transmission lines to the Indian-based company and a unit of the African Development Bank, according to an economic advisor to the country’s president.
The concession is worth $1.3 billion, David Ndii, chief economic adviser to President William Ruto, said in a post on X.
“The government through KETRACO has awarded PPP concessions to Adani and Africa50 to build new transmission lines,” Ndii wrote. “They are hiring their project teams. The cost of these transmission lines is $1.3b that we do not have to borrow.”
Africa50 is an infrastructure investment offshoot of the African Development Bank.
Developers of Adani’s Power Lines Construction in Kenya
Adani Group and the African Development Bank did not immediately respond to a Reuters request for comment outside normal business hours.
A separate plan by the Kenyan government to lease the country’s main international to the Adani Group has sparked anger among Kenyans and also triggered a strike by the country’s aviation workers.
The plan involves leasing the Jomo Kenyatta International Airport to the Adani Group for 30 years, in exchange for $1.85 billion of investment by Adani into the airport’s expansion.
Adani’s group operates seven airports in India and has often faced criticism from Indian opposition parties for winning favours from ruling governments. Indian officials and the Adani group have denied such accusations.
Kenya is struggling with a high debt load accumulated from years of splurging on infrastructure.
A proposal by the government to hike taxes to generate extra money needed for debt repayments sparked deadly protests this summer and forced the government to rescind the proposal.
Current State of Affairs on JKIA Deal on Adani
The Government of Kenya has issued a comprehensive defense of its decision to consider a proposal from India’s Adani Airport Holdings for the expansion of Jomo Kenyatta International Airport (JKIA) in Nairobi, following a wave of protests by airport workers that caused significant disruption.
The move comes after unrest at Kenya’s busiest airport, sparked by concerns over potential job losses and the privatization of the facility. The protests resulted in flight delays, disrupted operations, and left hundreds of passengers stranded. Responding to the outcry, government spokesperson Isaac Mwaura clarified the rationale behind the proposed partnership, emphasizing that no agreement has yet been signed and that the airport remains a strategic national asset not up for sale.
“The Adani proposal is still under consideration, with no terms agreed upon. JKIA is a strategic national asset and is not for sale,” Mwaura stated in a press release on Monday. “The Government sees the Public-Private Partnership (PPP) model as the most viable financing option for critical infrastructure upgrades.”
Adani Airport Holdings submitted a Privately Initiated Proposal (PIP) in March 2024 under Kenya’s PPP Act. The proposal is undergoing what Mwaura described as “thorough due process,” including stakeholder engagement, National Treasury approval, and Cabinet clearance, as mandated by the PPP Act of 2021.
Key aspects of the Adani proposal include a commitment to infrastructure investment, economic contributions such as taxes and concession fees, and the social impact of creating jobs and securing existing employment for Kenyans. The plan also emphasizes enhancing JKIA’s competitiveness through regulated passenger charges to ensure affordability. |
