Kenya awards $1.3 bn transmission deal to Adani amid airport lease protests

Kenya has awarded a $1.3 billion public-private partnership contract to India's Adani Group and Africa50 for the construction of power transmission lines

Despite facing protests and opposition from unions until recently over the transfer of management of the country’s primary airport to the Adani Group, led by Gautam Adani, the Kenyan government has confirmed that the conglomerate will construct power transmission lines, as reported by The Economic Times.

Kenya Electricity Transmission Company (Ketraco) has granted a concession for a public-private partnership to construct power transmission lines to India's Adani Group and an entity of the African Development Bank, according to a presidential economic advisor, the report said.

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

 

In the 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 their project teams. The cost of these transmission lines is $1.3 billion that we do not have to borrow."

Africa50 is an investment platform focused on infrastructure, operating under the African Development Bank.

In a separate development, the Kenyan government’s plan to lease the country’s principal international airport to the Adani Group has generated public outrage and led to a strike by aviation workers. The proposal includes leasing Jomo Kenyatta International Airport to the Adani Group for a 30-year term, with the company investing $1.85 billion in the airport’s expansion, the report said.

Adani's company, which operates seven airports in India, has faced frequent criticism from Opposition parties in India, who accuse the company of benefiting from government favouritism. Both Indian officials and the Adani Group have consistently denied these claims.

Kenya is currently grappling with significant debt, accumulated through years of heavy infrastructure investment. Earlier this year, the government's plan to raise taxes in an effort to generate funds for debt repayment led to violent protests, forcing the administration to retract the proposal.