Inside the Ksh.355B cancelled Adani deals for JKIA and KETRACO

The name Adani was not popular in Kenya until March this year when the Indian conglomerate submitted a privately initiated proposal to the Kenya Airports Authority (KAA) proposing to develop and expand the Jomo Kenyatta International Airport (JKIA) through the build, operate, and transfer (BOT) model under the Public-Private Partnership.

The Adani deals, now cancelled, were sealed with break-neck speed and shrouded in secrecy, sparking widespread criticism.

In the deal that was completed in a record 17 days, Adani proposed to give JKIA a facelift through refurbishment and building of a new apron, taxiway system, and two rapid exit taxiways, slated for completion by 2029, among other phased developments, at a total cost of Ksh.260 billion.

In return, Adani would take over the operations of the airport for a period of 30 years.

During this period, Adani would take over nearly all the functions currently performed by the Kenya Airports Authority, including having the powers to hire and fire employees of the airport, among others.

However, even before the deal could take off, concerns arose as it emerged that Kenyans may have gotten a raw deal and handed the short end of the stick by the Indian investors.

The disgruntled KAA employees went on strike, shutting down operations in the country’s airports.

In the end, the courts slammed the brakes on the deal, raising a red flag on the speed, secrecy, and lack of public participation in the process.

But even before the dust could settle on the JKIA takeover, the conglomerate had concluded another critical infrastructure deal, with the CS for Energy announcing an Adani-Ketraco power transmission deal.

"We have signed a Ksh.95 billion Ketraco deal with Adani,” CS Opiyo Wandayi said.

Under the second arrangement, Adani Energy Solutions – a subsidiary of the Adani Group – would build and operate power infrastructure, including transmission lines in the country, for 30 years.

In the build-own-operate-transfer arrangement, Adani would develop the 400-kilovolt Gilgil through Thika and Malaa to Konza transmission line stretching 208.73 kilometres.

The second 220-kilovolt line from Rongai to Keringet and Chemosit would have covered 99.98 kilometres, with new substations at Rongai, Keringet, and Chemosit. A third line would have been constructed from Menengai through Ol Kalou to Rumuruti, extending for 89.89 kilometres.

If not for President Ruto’s cancellation, the Indian firm would also have set up a substation at Thurdibuoro in Kisumu County.

The cancellation of the Ketraco deal, which was signed, could be tricky for Kenya, as it may cost the country huge penalties for terminating it.