Orange Democratic Movement (ODM) leader Raila Odinga has publicly supported the contentious proposal to lease Jomo Kenyatta International Airport (JKIA) to the Adani Group, asserting that such a move would significantly benefit Kenya.
During a speech in Mombasa on Sunday, October 8, Odinga emphasized the country’s current economic difficulties as a primary justification for embracing public-private partnerships (PPPs).
Adani Group’s Credibility and Track Record
Odinga expressed strong confidence in the Adani Group’s capabilities, stating:
“Adani is a credible partner. They have proven their capabilities in projects that surpass what we have seen in East Africa.”
To bolster his argument, the former Prime Minister highlighted several large-scale projects undertaken by the Adani Group in Gujarat and Mumbai, India. These projects, according to Odinga, serve as concrete evidence of the group’s potential to deliver substantial results under favorable conditions.
Adani’s Interest in Kenya
Providing historical context, Odinga revealed that the Adani Group’s interest in investing in Kenya dates back to 2010. However, he noted that these initial investment plans were halted due to the absence of a robust legal framework for Public-Private Partnerships in the country at that time.
Addressing Concerns and Ensuring Kenya’s Attractiveness to Investors
While acknowledging some reservations about the PPP processes for JKIA and the energy sector, Odinga stressed the importance of maintaining Kenya’s appeal to international investors. He said,
“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.”
The ODM leader, who is also an aspirant for the African Union Commission chairmanship, advocated for improvements in the current PPP framework to build trust and maintain investor confidence. He emphasized:
“The country needs to protect the framework of PPPs and investors that show interest in putting money into our public services and utilities. Otherwise, no investor will set foot here.”
Adani Energy Group’s Power Project
Odinga’s endorsement of the Adani Group comes on the heels of a significant development in Kenya’s energy sector. Just days prior to his speech, the Adani Energy Group, a subsidiary of the Adani Group, signed an agreement for Kenya’s first public-private partnership-funded power project.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed the deal, which is valued at approximately Ksh.95.68 billion (USD 736 million).
The newly signed agreement aims to provide a long-term solution to Kenya’s persistent power outages by ensuring more reliable electricity sources to meet the country’s growing industrial and economic demands.
Under the terms of the agreement, the Adani Energy Group will oversee and manage Kenya’s power infrastructure before eventually transferring it to the Kenya Electricity Transmission Company (KETRACO).
