Orange Democratic Movement (ODM) leader Raila Odinga has weighed in on the controversial Jomo Kenyatta International Airport (JKIA)-Adani deal, stating that the proposed leasing of Kenya's busiest airport to the Adani Group, would greatly benefit the country.
Speaking in Mombasa on Sunday, October 13, Raila cited Kenya's economic struggles as a key reason why there was a need to embrace Public-Private Partnership (PPP). Raila also strongly backed Adani as a 'credible partner'.
“Adani is a credible partner. They have proven their capabilities in projects that surpass what we have seen in East Africa," he said.
Raila further cited several projects in Gujarat and Mumbai in India as key testimonies of what the Adani Group was capable of under the right circumstances.
While citing a previous meeting with India's Prime Minister Narendra Modi during his time as the Chief Minister of the state of Gujarat, Raila disclosed the Adani Group's interest in investing in Kenya dates back to 2010, but was quelled by the absence of a proper legal framework for Public-Private Partnerships.
“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,” Raila recalled, as he described how the Adani Group turned a swamp in the Asian country into an industrial hub which included a port, power plant and overall industrial hub.
“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," he said.
Despite strongly advocating for PPPs, Raila observed the need for some improvements in the current framework to ensure trust and retain confidence in investors.
He added: "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."
Raila's stance on Adani came just days after the Adani Energy Group - a subsidiary of the Adani Group - signed Kenya's first public-private partnership-funded power project. Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed the deal estimated at Ksh.95.68 billion (USD 736 million).
The agreement is aimed at permanently sorting out Kenya's persistent power outages by ensuring more reliable sources of electricity for the country's exploding industrial and economic demands.
Under the agreement, the Adani Energy Group will oversee the country's power infrastructure before it is transferred to KETRACO.
Meanwhile, there is still a huge wave of uncertainty surrounding the Adani Airports Holdings Limited (AAHL) takeover of the JKIA, with the matter now taken to court.
On one hand, AAHL argues that the cases filed against the company by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) in court challenging the controversial takeover are malicious and ill-timed since the project is still in its due diligence stage.
The High Court is set to make a ruling on October 25 on whether it will refer a case challenging the controversial takeover of JKIA to the chief justice. If this happens, the CJ will appoint an uneven number of judges to determine the matter.
