Ruto Defends Adani Deals Again, Explains Group's Role In Kenya's Growth
Ruto was in support of Private Partnerships, including Adani, arguing that their capacity can alleviate the tax burden on Kenyans and cut overdependence on loans.
President William Ruto has again defended the involvement of Indian conglomerate Adani's involvement in key infrastructure projects across Kenya, urging Kenyans to embrace private partners as they can finance mega-projects in the country.
Speaking in Nakuru on Thursday 24, October during the groundbreaking of the the 35MW Orpower 22 Power Plant, Menengai, Nakuru County, Ruto was in support of Private Partnerships, including Adani, arguing that their capacity can alleviate the tax burden on Kenyans and cut overdependence on loans.
He argued that by Kenyans supporting private partners, this would take the country in the right direction. Ruto referred to Adani's latest deal, an agreement between the Indian firm's energy division and Kenya Electricity Transmission Company Limited (KETRACO) worth Ksh95.7 billion which will see the firm operate and maintain transmission lines and substations for 30 years in a bid to curb power blackouts.
A collage of Adani Group CEO Gautam Adani and the logo of his company. /INDIA TODAY
"The Adani group is investing in the transmission line with their own money, Ksh95 Billion. We would have otherwise gone to borrow that money and burden the people of Kenya, but this is now a private-sector investment. We will pay for that transmission line using a willing charge that has been negotiated," Ruto announced.
The president further noted that Kenya needs the private sector to invest in it to help the nation realize its potential and fully exploit its existing resources.
"It is important for us as a nation to appreciate that a partnership between the public and private sector gives us a win-win situation where we can deliver public services using the efficiency and investment of the private sector as a way of supporting overall development in our country," he continued.
In the Private Partnership for the 35MW Orpower 22 Power Plant in Nakuru, Kaishan Group from China has invested Ksh12 Billion in a project that will see them produce power, which Kenya will be buying from them. It started electricity supply in June 2023. Other Private Partners that have invested in the country as listed by President Ruto include Sossian who has invested in Power, Globlec, Adani, and Kaishan.
Over the years Private partnerships enabled the Government of Kenya to implement high-quality infrastructure projects, especially in the energy and roads sectors.
However, it is Adani's involvement that has resulted in a lot of backlash after details emerged of the firm's plans to take over the Jomo Kenyatta International Airport (JKIA) for a period of 30 years for renovations.
On October 2, President Ruto defended the move to expand JKIA, terming the expansion of the country's largest airport as integral given that this would allow it to host more passengers.
According to Ruto, the country is projecting to accommodate up to five million visitors from around the world, and the government’s ambitious plan to expand JKIA would allow it to accommodate a large number of visitors by 2027.
Adani has committed to a Ksh238 billion investment to upgrade and expand the airport. Several stakeholders including the Kenya Human Rights Commission (KHRC) and Law Society of Kenya (LSK) however moved to court to stop the deal citing that leasing a strategic and profitable JKIA to a private entity with questionable past reputation is irrational.
On the other hand, former Prime Minister Raila Odinga on October 13 addressed critics' concerns about transparency and investor integrity. He stressed the Adani group's track record and ongoing interest in Kenya, which dated 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.