Kenya: Adani Offers Best Deal for Kenya, Raila Says

14 October 2024

Nairobi — Azimio leader Raila Odinga has supported the government's public-private partnership (PPP) with Indian contractor Adani, amidst rising controversy over the involvement of the firm in Kenya's infrastructure projects.

Odinga in a statement emphasized the urgent need for Kenya to upgrade its infrastructure, which includes critical sectors like transportation, energy, and digital connectivity.

He acknowledged that the nation faces a significant financial challenge, as traditional revenue sources such as taxation and borrowing from international institutions have become less favorable among citizens grappling with a high cost of living and existing debt burdens.

Specifically, Odinga pointed out the pressing need to modernize Jomo Kenyatta International Airport (JKIA), which has been operating beyond its capacity, handling 8.5 million passengers last year.

"Again, in the last Financial Year, JKIA handled 8.5 million passengers, meaning it has already optimized its passenger capacity. Its runway that is designed for 35 movements per hour is already doing 21 movements and is set to operate full capacity by 2028, four years from now. Time is definitely running out for the overhaul, modernization and expansion of JKIA,"read the statement by Odinga in part.

He noted that a significant portion of passengers currently use temporary facilities, underlining the urgency for upgrades to keep pace with competing airports in the region.

On the energy front, Odinga referenced a $5 (Sh645,850,000,000)billion financing gap in Kenya's Transmission Master Plan, which aims to improve the capacity and reliability of the country's electricity distribution network.

He stressed that effective PPP arrangements could bridge this gap and enhance energy infrastructure, particularly with investments in green energy.

While acknowledging the public's skepticism regarding the PPPs involving Adani, Odinga urged for transparency and fairness in the processes, asserting that any partnership must protect both national interests and the rights of investors.

He called for reforms in the existing PPP framework to ensure it meets the expectations of all stakeholders.

The deal between government and Adani has faced an array of skepticism from Kenyans who have continue to question the rational with which the tender was awarded.

Earlier,president William Ruto defended the move,emphasizing Kenya's position as a premier tourist destination, making the proposed airport revamp a top priority.

"We want to have five million tourists, and that's why we need to expand our airport and hospitality facilities across the country," Ruto stated. "

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