Odinga Defends Adani Deals, Reveals Long-standing Ties

Former Prime Minister Raila Odinga has defended the controversial awarding of lucrative government contracts to Indian conglomerate Adani as Wiper leader Kalonzo Musyoka accuses the broad-based Cabinet of enabling state control.

Mr Odinga reveals that his introduction to the Adani Group came through Indian Prime Minister Narendra Modi, who facilitated a visit by Kenyan officials to the company’s projects in India. These included substantial developments such as a port, power plant, railway line, and an airstrip constructed on government-donated swampland. The Adani Group has recently secured significant deals in Kenya’s energy sector. Energy and Petroleum Cabinet Secretary Opiyo Wandayi recently announced a partnership between the Kenya Electricity Transmission Company and Adani Energy Solutions, involving five projects worth Sh 95.68 billion to be operated by the Indian firm for 30 years.

Additionally, Adani is in talks for a controversial 30-year operational agreement for Jomo Kenyatta International Airport, valued at $2 million. The company has also been associated with a Sh 104 billion Universal Health Coverage information system through Apeiro Limited. Mr Odinga, who has largely remained silent on governance issues since launching his African Union Commission chairmanship campaign, defends the Adani Group as a reputable firm. He notes that the company’s entry into Kenya might face challenges due to ineffective legal frameworks, despite its interest in investing in the country since 2010 when Mr Odinga served as Prime Minister.

While praising the company’s capabilities, Mr Odinga highlights the need for a proper Public-Private Partnership (PPP) model in Kenya to protect both national interests and those of foreign investors. He emphasizes that Kenya’s current PPP laws are inadequate to meet the country’s needs and the expectations of its citizens, as well as the business interests of foreign investors. To address these issues, Mr Odinga proposed several measures, including designing a Kenya-specific PPP model, ensuring fair risk distribution between investors and the country, and establishing minimum standards that include the application of Kenyan laws.

He stresses that Kenya can no longer rely solely on development loans from institutions like the World Bank and International Monetary Fund, making it crucial to implement a PPP model that considers what neighbouring countries offer to investors. In a separate development, former Vice President Kalonzo Musyoka has accused the broad-based Cabinet of perpetuating state capture. Mr Musyoka alleges that key sectors such as energy, transport, and health have seen multibillion-shilling deals awarded to Adani in an opaque and non-competitive manner.

He vows to challenge these deals in court, expressing particular concern over the new healthcare system which he claims has exposed Kenyans to significant suffering and even deaths.