Kenya awards Adani $1.3bn gas contract amid airport lease protests

Gautam Adani (Photo: Bloomberg)

2 minutes of reading Last update: Sep 16, 2024 | 9:50 AM IST

Despite protests and opposition from trade unions, which until recently opposed the transfer of management of the country’s main airport to the Adani Group led by Gautam Adani, the Kenyan government has confirmed that the conglomerate will build electricity transmission lines, as reported by Economic times.

Kenya Electricity Transmission Company (Ketraco) has granted India’s Adani Group and an African Development Bank entity a public-private partnership concession to build electricity transmission lines, a report says.

David Ndii, chief economic advisor to President William Ruto, announced in a post on X (formerly Twitter) that the concession is worth $1.3 billion.

In a post on X, Ndii said: “The government through Ketraco has awarded PPP concessions to Adani and Africa50 to build new transmission lines. They are hiring design teams. The cost of these transmission lines is $1.3 billion, which we do not need to borrow.”

Africa50 is an infrastructure-focused investment platform operating within the African Development Bank.

In a separate development, the Kenyan government’s plan to lease the country’s main international airport to Adani Group has sparked public outrage and led to an aviation workers’ strike. The proposal includes leasing the Jomo Kenyatta International Airport to Adani Group for 30 years, with the company investing $1.85 billion to expand the airport, the report said.

Adani, which operates seven airports in India, has often faced criticism from opposition parties in India who accuse the company of benefiting from government favoritism. Both Indian officials and Adani Group have consistently denied the allegations.

Kenya is currently struggling with a significant debt, accumulated over years of heavy infrastructure investment. Earlier this year, the government’s plan to raise taxes to generate funds to pay down the debt led to violent protests, forcing the administration to withdraw the proposal.

First published: Sep 16, 2024 | 9:50 AM IST