Controversies are raging over Indian conglomerate Adani Group’s massive deals in the health, energy and transport sectors over the emerging details on the huge costs, the long duration of the contracts and other suspect arrangements.
The plan to lease the Jomo Kenyatta International Airport (JKIA) to the group for 30 years has sparked public anger. While it is important to expand and upgrade airports for the country to remain the regional aviation hub, the JKIA is a national assets that should not just be surrendered to foreigners.
Questions have also arisen over Adani’s entry into a healthcare scheme following the inflating of the cost by a whopping Sh56 billion. Medical Services Principal Secretary Harry Kimtai’s explanation is that the project’s scope was expanded, hence the steep increase.
A Safaricom-led consortium had offered to provide the Ministry of Health with an integrated universal healthcare system and help to implement it for more than 10 years at a cost of Sh48 billion. But since the arrival of Adani, it has shot up to Sh104 billion, a huge Sh56 billion increase.
In the energy sector, the total expenses for five projects are much higher than the government’s initial cost of Sh33.5 billion. The deal signed with Adani Energy Solutions to build and operate three transmission lines and substations was worth Sh61.2 billion. However, on Friday, new Energy and Petroleum Cabinet Secretary Opiyo Wandayi signed a deal for the Indian firm to build and operate the projects at Sh95.68 billion for 30 years before handing them back to the country.
Former ODM party leader Raila Odinga, whose associate Mr Wandayi now heads the Energy portfolio following a pact with President William Ruto, has defended the Sh95 billion energy deal. His only justification of the award of the lucrative government deal to what he claims is a reputable firm is that he was introduced to the Adani Group by Indian Prime Minister Narendra Modi. The government also insists that the Adani deals will eventually be beneficial. If, indeed, the projects are meant to benefit the people, then they have every right to know exactly what is involved.
