Former Prime Minister Raila Odinga has explained his first interaction with the Adani Group of Companies, an indian firm interested in rehabilitating the Jomo Kenyatta International Airport (JKIA) and energy projects.
Addressing the press on Sunday, October 13, 2024, Raila indicated that the company was first introduced to him while serving as the country’s prime minister.
After the introduction, Raila detailed that was invited to India by Prime Minister Narendra Modi who was then the Chief Minister of Gujarat for a benchmarking mission.
During the visit, Raila Odinga indicated that he witnessed how Adani Group had developed various projects in India including a port, power plant and an airstrip.
“I was the Prime Minister of Kenya I was introduced to the company and its activities by Prime Minister Narendra Modi while he was then the Chief Minister of Gujarat,” Raila explained.
“Indeed Prime Minister Modi organised for a Kenya government mission to visit Gujarat and I had the opportunity of visiting this company’s infrastructure that included a port, power plant, railway line and airstrip developed by what was a swamp donated by the government of India. I am talking about the Adani Group of Companies.”
“I also visited the city of Mumbai to see the electricity project set up by the company,” he added.
Following the visit, Raila recalled that Modi presented the Public Private Partnership (PPP) framework to the country which explained how it was being applied in India. In 2010, Adani Group then tried to approach the country but the PPP framework was not fully developed, Raila told the media.
He lauded Adani Group explaining that the energy portfolio is more than that of Kenya, Uganda and Tanzania combined
5 conditions on PPP projects
Despite his successful visit to India where he witnessed the successful implementation of PPP projects by the Adani Group, Raila challenged the government to adopt measures to ensure all parties benefit from the projects.
Here are the proposals read out by Raila on PPP project consideration frameworks
- Choose the appropriate PPP model that works best for the people of Kenya
- Ensure our models provide for the distribution of the PPP burden fairly between the people of Kenya and investors
- We must establish irreducible minimum terms in our PPPs including the recognition of the jurisdiction of Kenyan courts, recognition of terms and conditions of labour in Kenya, recognition of environmental protection
- We must ensure that there are viable publicly financed alternatives for every PPP project that requires any form of premium payment for the use
- We must ensure that the discharge by investors and responsibilities is secured by performance bonds guaranteed by credible banking institutions.
Message to Kenyans and government
Without directly endorsing Adani Group, Raila indicated that the development proposals present an opportunity for Kenya to compete with its peers in the region.
He argued that failing to tap into such models would leave the country dragging behind in terms of development.
“The ongoing energy and airport project presents a critical test that could make or break our ability to compete in the field of infrastructure development for a considerable period,” he opined.
Nonetheless, he directed the relevant agencies to address the issues raised by Kenyans regarding the PPP models.
“I urge all agencies concerned to address all the concerns raised by Kenyans on this projects and ensure that we did not spook foreign capital away from the Kenyan economy.”
