Busia Senator Okiya Omtatah has raised concerns about Kenya’s dealings with the embattled Indian billionaire Gautam Adani, following his indictment for fraud in the United States.
Omtatah took to his X account on Thursday, November 21, 2024, to voice his disapproval of Kenya’s regulatory bodies for failing to perform due diligence during approvals of public-private partnership (PPP) contracts with the Adani Group.
“Concerns were raised about PPP contracts with Adani group yet key regulatory bodies overlooked ADANI’s past misconduct during approvals. Due diligence was compromised. Someone needs to take responsibility. We need accountability among public servants to prioritize Kenya over corruption and self-serving interests,” the senator wrote.
Adani indicted
The scandal, which has drawn global attention, accuses Adani and senior executives of his firm, Adani Group, of bribing Indian officials to secure contracts projected to generate profits of $2 billion (Ksh259 billion) for over 20 years.
According to the indictment filed in New York, the group also misled US and international investors while raising $3 billion in loans and bonds, concealing the bribery scheme, and obstructing a 2022 investigation.
US Attorney Breon Peace emphasized the significance of the charges, stating that they highlight efforts to combat international corruption and protect investors.
The Adani Group, a conglomerate with operations spanning various industries, has termed the allegations as baseless.
“The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,’ Adani stated.
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws.”
JKIA deal
Adani’s legal troubles have reignited scrutiny in Kenya, where his company, Adani Airports Holdings Ltd (AAHL), had been set to take over operations at the Jomo Kenyatta International Airport (JKIA).
The contentious firm had pitched a plan to invest $1.85 billion (approximately Ksh238 billion) to upgrade and expand JKIA, proposing to operate the airport for 30 years before transferring control back to the Kenya Airports Authority (KAA).
However, the proposal sparked concerns among aviation employees over potential job losses during Adani Group’s two-year transition phase, despite assurances to retain current staff. Additionally, many stakeholders pushed for an open and competitive bidding process to guarantee transparency in awarding the contract.
Kenya Aviation Workers Union (KAWU) Secretary General Moses Ndiema, speaking on Wednesday, September 11, 2024, stressed that the union opposes the current terms proposed for leasing the airport.
He reaffirmed his dedication to safeguarding the interests of aviation workers.
“Ata wakate mkono sita sign,” Ndiema said.
“What I can say on my part very briefly ni kwamba hatujasema sisi tumekubali Adani. Pili, tutapewa kura ya turufu – veto power ambayo kalamu yetu itahitajika ndo isonge hatua moja mbele, hio ni sawa sawa? Na si munanijua? Si munaniamini? Kama ni mbaya si ntawaambia? Na ata wakate mkono sita sign sindio?”
This came after the union suspended a strike that had disrupted operations at key airports across the country opposing the controversial deal.
Raila, Ruto defend Adani
Former Prime Minister Raila Odinga defended the Adani-Kenya deals revealing that his first encounter with India’s Adani Group occurred during his tenure as Kenya’s prime minister.
Speaking on October 13, 2024, Raila shared that he was introduced to the company before being invited to India by then Gujarat Chief Minister Narendra Modi. During the visit, he observed Adani’s development of key infrastructure, including a port, power plant, and 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.
Adding
“Indeed Prime Minister Modi organised a Kenya government mission to visit Gujarat and I had the opportunity of visiting this company’s infrastructure 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.
President William Ruto also defended the awarding of multi-billion-shilling power transmission projects to the Adani Group, emphasizing the financial benefits for Kenyans.
Speaking during the launch of a power plant in Nakuru County, Ruto highlighted that the Adani Group is investing Ksh.95 billion of its funds into the project.
He noted that this approach spares Kenyans from the burden of additional public debt, which would have been necessary if the government had sought external financing for the initiative.
“The Adani group are investing Ksh.95 billion of their money in the transmission line. We would have otherwise gone to borrow that money and burden the people of Kenya,” Ruto stated.
