Former Prime Minister Raila Odinga has shared details of his first encounter with the Adani Group, the Indian firm interested in rehabilitating Jomo Kenyatta International Airport (JKIA) and undertaking energy projects.
Speaking to the press on Sunday, October 13, 2024, Raila explained that he was first introduced to the company while serving as Kenya’s prime minister. He noted that Prime Minister Narendra Modi, who was then the Chief Minister of Gujarat, invited him to India for a benchmarking mission.
“I was introduced to the Adani Group and its activities by Prime Minister Narendra Modi when he was still the Chief Minister of Gujarat,” Raila said.
“Modi organized a visit for a Kenyan government mission to Gujarat, where I saw firsthand the infrastructure developed by the Adani Group. This included a port, a power plant, a railway line, and an airstrip, all built on what was once a swamp donated by the Indian government. I’m talking about the Adani Group of Companies.”
He added, “I also visited Mumbai to see the electricity project they set up.”
After the visit, Raila recounted that Modi presented Kenya with a Public-Private Partnership (PPP) framework, explaining how it had been applied in India. He noted that in 2010, Adani Group sought to engage with Kenya, but at that time, the PPP framework in the country was not fully developed.
Raila praised the company, highlighting that their energy portfolio surpasses that of Kenya, Uganda, and Tanzania combined.
Despite his positive experience witnessing the implementation of PPP projects in India, Raila urged the Kenyan government to ensure that such projects benefit all parties involved.
Here are the proposals that Raila Odinga outlined regarding frameworks for Public-Private Partnership (PPP) projects:
1. Choose an appropriate PPP model: Ensure the model chosen is the one that works best for the people of Kenya.
2. Fair distribution of the PPP burden: Ensure that the burden of PPPs is fairly shared between the people of Kenya and investors.
3. Establish irreducible minimum terms: These terms should include recognition of the jurisdiction of Kenyan courts, adherence to Kenyan labor terms and conditions, and a commitment to environmental protection.
4. Publicly financed alternatives: For every PPP project requiring a premium payment for use, there must be viable publicly financed alternatives.
5. Performance bonds by credible banks: Ensure that investors fulfill their responsibilities, secured by performance bonds guaranteed by credible banking institutions.
Message to Kenyans and the government:
Without directly endorsing the Adani Group, Raila highlighted that the development proposals present an opportunity for Kenya to remain competitive in the region. He warned that neglecting such models could leave Kenya trailing behind in terms of infrastructure development.
“The ongoing energy and airport project presents a critical test that could either boost or hinder our ability to compete in the field of infrastructure development for a long time,” he stated.
He also urged the relevant agencies to address the concerns raised by the public about the PPP models.
“I urge all agencies concerned to address the concerns raised by Kenyans regarding these projects, and to ensure that we do not drive foreign capital away from the Kenyan economy,” Raila emphasized.
