Adani seeks Ksh.116B deal for Tanzania power lines

Adani Group is negotiating a $900 million (about Ksh.116 billion) deal to upgrade Tanzania’s electricity transmission line, Bloomberg reports, citing a top government official familiar with the matter.

The Indian conglomerate owned by billionaire Gautam Adani seeks to construct high-voltage power lines through a public-private partnership deal, David Kafulila, executive director of Tanzania’s Public-Private Partnership Centre, told the news agency.

Bloomberg reports that Kenya’s southern neighbour is also in talks with UK company Gridworks Development Partners LLP for a $300 million power-lines project under the public-private partnership.

In June, Adani Group’s Adani International Ports Holdings (AIPH) signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam port.

The group owns Adani Airport Holdings Limited, which is involved in a controversial $1.85 billion (about Ksh.239 billion) proposed investment deal with the Kenyan government to expand the Jomo Kenyatta International Airport (JKIA) in Nairobi.

The court has halted all further action on the proposed lease of JKIA to Adani until a case lodged by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) on September 9 blocking the deal is resolved. 

At the same time, Adani is also involved in a Ksh.94 billion deal with the Kenya Electricity Transmission Company Limited for the construction of 422 kilometres of power transmission lines in the country.

The group has been at the centre of controversy beyond just Kenya in recent years.

In 2023, Adani was accused of fraud and market manipulation by an American investment research firm, and it has also been accused of political corruption, tax evasion, environmental damage, and suing journalists.