Adani is a reputable company - Raila backs controversial JKIA lease deal

Former Prime Minister Raila Odinga has voiced his support for President William Ruto’s endorsement of the contentious leasing of Jomo Kenyatta International Airport (JKIA) to the Indian conglomerate, Adani Group.

Speaking in Mombasa on Sunday, Rala said the company was reputable and had undertaken mega projects in India that transformed the country's economy.

"The company owns more energy infrastructure than Kenya, Uganda, and Tanzania combined... It is a reputable company by my knowledge," Raila stated, citing Adani's projects in Gujarat and Mumbai in India.

On JKIA, he argued that the airport handled over 8.5 million passengers in the last financial year, meaning it has already surpassed its capacity.

Its runway designed to handle 35 planes per hour is already doing 21 movements and, in 2028, will be running at full capacity.

"Time is already running out for the overhaul of the organisation and expansion of JKIA," he stated.

He added that embracing the public-private partnership (PPP) was critical for the country at a time when it is in great need of infrastructure.

Adani Group is set to take over the management of JKIA for 30 years, proposing to build a new runway and other airport facilities.

According to Raila, Adani attempted to invest in Kenya but was hampered by the lack of a proper legal framework for public-private partnerships.

“There have been misgivings about how the PPP processes for JKIA and the energy sector have been handled, but we must ensure that Kenya remains an attractive destination for such investments," he said.

Adani Energy Group, a subsidiary of the Adani Group, also recently signed Kenya's first public-private partnership-funded power project, granting it authority to oversee the country's power infrastructure before it is handed back to KETRACO.

Adani Group, a multinational conglomerate, headquartered in Ahmedabad, India. (Photo: Handout)

Raila backed Energy and Petroleum Cabinet Secretary Opiyo Wandayi's remarks that the deal projected to cost Sh95.68 billion (USD 736 million) was a game changer.

"I am also aware that Kenya has for possibly a longer period been in great need of infrastructure to receive and distribute electricity from new investments to green energy and all parts of the country.

"I knew this when I was the Energy Minister," he said, adding that the country has been struggling financially to close funding gaps in plans to revamp the energy sector.

However, he acknowledged the uproar around the swift approval of Adani's JKIA and energy sector deals, calling for more transparency.

Nonetheless, he argued that misinformation and disinformation around the deals were rife.

President William Ruto, speaking at the Magical Kenya Travel Expo 2024 at Uhuru Gardens in Nairobi, in October this year, defended plans to lease JKIA to Indian company Adani Group for renovations and expansion.

Ruto said that Adani aims to enhance Kenya’s capacity to attract 5 million tourists by 2027.

“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. “Kenya welcomed over 2.3 million visitors by the end of 2023, generating Ksh350 billion in revenue—a clear indicator of our global appeal," he stated.

However, his deputy, Rigathi Gachagua, who is facing impeachment, claimed that the Adani deal is scandalous and invited Parliament, the media and other stakeholders to investigate it.

Adani's architectural design concept for JKIA drawing inspiration from Kenya’s butterflies. (Photo: Handout)