Raila defends Adani group amid JKIA, power sector PPP controversy

Raila addressed critics' concerns about transparency and investor integrity in a media statement issued on Sunday.

He emphasised the group's track record and ongoing interest in Kenya, which dates back to 2010.

The controversy revolves around proposed Public-Private Partnerships (PPP) for the modernisation of Jomo Kenyatta International Airport (JKIA) and Kenya's power transmission sector.

The public has questioned the processes leading up to Adani's potential involvement, but Raila is now defending the company's credibility, citing firsthand experience with their projects in India.

“When I was the Prime Minister of Kenya, I was introduced to Adani by Prime Minister Narendra Modi, who was then Chief Minister of Gujarat,” said Raila. 

He described a trip to Gujarat, where Adani had turned a swamp into a bustling port, power plant, and industrial hub.

"In Mumbai, I witnessed how they transformed a collapsing airport into a world-class facility, and their power projects benefit millions."

Odinga emphasised that the group's proposal to invest in Kenya was made over a decade ago, but was hampered by the absence of a legal framework for Public Private Partnerships (PPPs) at the time.

He stated that Kenya's PPP laws are based on those of India, specifically the state of Gujarat, where Adani has played a significant role in infrastructure development.

However, he cautioned that the current framework must be improved in order to attract and retain investor confidence.

“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,” Raila stated. 

“Adani is a credible partner. They have proven their capabilities in projects that surpass what we have seen in East Africa.”

He also urged the Kenyan government to address public concerns in a transparent manner, ensuring that PPP processes are open, competitive, and fair.

While acknowledging the need for investor profits, Odinga emphasised the importance of safeguarding national interests, such as labour laws, environmental protection, and Kenyan courts' jurisdiction in disputes.

“If we scare away investors like Adani, we risk stalling critical infrastructure development at a time when our neighbors are pulling ahead,” he warned.

Raila also urged all stakeholders to avoid politicising the issue and instead focus on keeping Kenya competitive in attracting foreign capital to fund its infrastructure needs.

 "If we mishandle this, it could break our ability to develop for years to come," he cautioned.

The Adani Group, an Indian conglomerate, has proposed investing approximately $1.84 billion to expand and modernise Nairobi's Jomo Kenyatta International Airport (JKIA).

The proposal, submitted under the Public Private Partnership (PPP) model, seeks to allow Adani to improve airport facilities, such as the construction of a new terminal, taxiways, and related infrastructure.

The project would be completed over 30 years under a Build-Operate-Transfer (BOT) agreement, after which the airport would be returned to the Kenya Airports Authority (KAA).

However, the agreement has sparked considerable debate.

Critics, including the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK), argue that the proposal risks privatising a profitable national asset, transferring a significant portion of JKIA's revenue to Adani during the concession period.

Concerns have also been raised about the process's transparency, job security for Kenyan workers, and whether the deal is good value for money, given Kenya's potential to fund the expansion itself.