- President William Ruto's administration is keen to sign two controversial deals with the Indian company Adani Group
- However, the details of these multi-billion shilling deals are still unclear to the public, a move that led airport workers to strike for about 18 hours over the JKIA lease agreement
- Two years after taking over the leadership of the country, the Kenyan government has entered into similar agreements that are still controversial
Kenya it has yet to sign two contracts with the Indian company Adani Group.
Source: Twitter
On Monday, September 16, Energy Minister (CS) Opiyo Wandayi confirmed another Public Private Partnership (PPP) proposal from Adani Energy Solutions.
This followed the Adani Airport Holdings PPP proposal presented to the Kenya Airports Authority in March 2024.
Since coming to power in September 2022, the administration of the President William Ruto you have entered into various agreements worth billions of shillings aimed at bringing about economic change.
However, as the Auditor General explained, many contracts remain open to the public, as the government fails to disclose the details of PPP contracts.
What are the big money deals that remain the secrets of the Ruto government?
1. JKIA-Adani lease deal
Adani Airport Holdings, a subsidiary of the Adani Group, proposed a $2 billion (KSh 257.9 billion, based on current exchange rate) contract to upgrade the Jomo Kenyatta International Airport (JKIA).
“We received approval from the PPP Committee to enter into negotiations, under the participation of stakeholders and due oversight. If successful, the agreement will go to the KAA board, the Attorney General and finally the cabinet to get approval,” Transport Minister Davis Chirchir told MPs. Saturday, September 14.
The contract has sparked controversy over its terms of employment, which prompted Kenya Airports Workers Union (KAWU) workers to downsize for about 18 hours.
2. KETRACO-Adani deal
The company Adani Energy Solutions, under the Adani Group, also submitted a proposal of KSh 127 billion to the Electricity Distribution Company in the country (KETRACO).
Minister Opiyo confirmed the proposal was aimed at creating main distribution lines and sub-stations in Kenya.
“Adani Energy Solutions proposes 222 kv transmission line, about 99 km of 220 kv transmission and 400/220/132 kv substations,” revealed Wandayi.
The minister noted that if approved, the PPP agreement will be completed between 2026 and 2027.
3. CBK deal to print money
The Central Bank of Kenya (CBK) issued a printing tender of KSh14.2 billion to a German company.
Earlier, CBK governor Like Thugge he kept the details of the deal from the public until lawmakers called on him to reveal the contract.
Thugge told MPs that the five-year contract was awarded to Giesecke+Devrient Currency Technologies (G+D) of Germany.
“The specified purchase was made to avoid the problem of stock shortage. The contract was reviewed and approved by the Attorney General as required by law before being implemented by the Members,” said Thugge.
4. G2G oil import contract
According to the Auditor General of Government Accounts, Nancy Gathungu, the Ministry of Energy and Petroleum failed to provide the necessary information to review the oil import contract from Government to Government.
“Bilateral agreements governing the purchase of refined petroleum products between the government of Kenya and that of the United Arab Emirates (UAE) were not released for inspection,” said Gathungu as quoted in the Nation report.
In March 2023, Kenya entered into an agreement with Gulf companies to import oil on credit for six months to reduce pressure on the weakening of the shilling.
The government-to-government agreement with Saudi Aramco, Emirates and Abu Dhabi oil companies was extended until December 2024.
5. Deal to import cooking oil
The government entered into an agreement with private companies to import 125,000 tons of cooking oil duty-free in 2023.
A KSh 16.5 billion tender to import cooking oil was bought by the Kenya National Trading Corporation (KNTC), aiming to stabilize prices.
However, four of the companies awarded the contract to import products worth KSh 6 billion were linked to the government Kenya Firstcausing confusion.
What to know about complex government contracts
- Transport Minister (CS) Davis Chirchir revealed that Adani plans to build a city center on a 30-acre piece of land near JKIA.
- In 2022, President William Ruto hinted at the sale of shares in the national airline, Kenya Airways.
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