President William Ruto has come out to defend Adani Energy Solutions following their proposal to invest in the country’s energy sector.

Speaking on Thursday, October 24, 2024, during the groundbreaking for the 35 MW Orpower 22 Power Plant, Menengai, Nakuru County, the Head of State explained that Adani Group is investing Ksh95 billion to develop and maintain key transmission lines and substations across the country.

Ruto defended the government partnership with the Adani Group, indicating that the deal would help save the country from getting additional loans to maintain and build transmission lines.

While building a strong case in support of the private sector investment, the president maintained that the government would pay for the transmission using a wheeling charge.

“The Adani Group is investing in the transmission line; their money is Ksh95 billion; we would otherwise have gone to borrow that money and burden the people of Kenya.

“We will pay for that transmission line using a wheeling charge that has been negotiated, and it is important for us as a nation to appreciate the partnership between the public and private sectors that gives us a win-win outcome,” Ruto stated.

Private sector investment

At the same time, Ruto affirmed that his Kenya Kwanza administration was keen on leveraging private sector investment to spur development.

The Head of State detailed that the model is crucial to saving the country from incurring additional debts and taxes.

Ruto said that the development and maintenance of the Nairobi Expressway is an example of how private investment can help unlock various projects in the country.

“Many people would have expected us as a government to borrow money to come and invest in this facility. That is not the right way to go about it because we do not want to burden the people of Kenya with either additional taxes or additional loans when the private sector can do it much more efficiently,” Ruto stated.

“It is also the same principle that we have used to develop the Expressway in Nairobi. We are using that facility through tolling; they are collecting their investment. It is the same principle that we are using on our transition lines,” he added.

Adani’s storm

Adani Group has faced criticism over the past few months following their proposed interest in developing the Jomo Kenyatta International Airport (JKIA).

The proposed deal has been widely opposed, with many actors indicating that it is shrouded in secrecy.

At the moment, it is not clear on which route the government is taking regarding the proposed JKIA rehabilitation by the Adani Group.