(Nairobi) – Kenya will continue its partnership with India’s Adani Energy Solutions for a major electricity project despite ongoing fraud allegations against the company in the United States, Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed. The decision follows a detailed review process conducted by the government.
During a parliamentary session with the Energy Committee, Wandayi explained that the Kenya Electricity Transmission Company Limited (KETRACO) conducted a two-phase due diligence assessment of Adani Energies. This review included an examination of Adani’s technical, legal, and financial capabilities for constructing electricity transmission lines and substations.
Wandayi assured lawmakers that the findings of the evaluation complied with Section 41 of Kenya’s Public-Private Partnership (PPP) Act. He emphasized that Adani demonstrated the logistical and financial capacity to implement the project, which allows the company to operate four transmission lines and two substations for 30 years before transferring them to the government.
The deal, valued at Sh96 billion (approximately $640 million), was signed on October 12, 2024, amid public skepticism fueled by Adani’s legal troubles in other countries.
| Key Project Details | Specifications |
|---|---|
| Value | Sh96 billion ($640 million) |
| Duration | 30 years |
| Infrastructure | 4 transmission lines, 2 substations |
| Key Line: Gilgil-Thika-Konza | 400kV, spanning 208.73 km |
| Key Line: Rongai-Keringet | 220kV, spanning 100 km |
Wandayi defended the partnership, stating that the government is operating based on the robust legal review of Adani’s capacity. President William Ruto also supported the project, arguing that public-private partnerships are critical for financing large-scale infrastructure without increasing public debt or taxes.
Ruto cited Kenya’s success with other PPP projects, including the Nairobi Expressway, as a model for the nation’s collaboration with private investors. He stated that Adani’s investment would ultimately lower electricity costs across Kenya.
Adani Group, led by billionaire Gautam Adani, has denied allegations of orchestrating a $250 million bribery scheme in India. U.S. prosecutors allege that Adani executives paid Indian officials to secure renewable energy contracts that could generate $2 billion in profits over 20 years.
Despite these allegations, Adani has expressed its commitment to ethical governance in all jurisdictions. “We uphold the highest standards of transparency and compliance,” a company spokesperson stated, adding that the charges are unproven and that Adani remains innocent until proven guilty.
The U.S. fraud allegations have increased scrutiny of Adani’s global operations, including its investments in Kenya. Apart from the KETRACO deal, the conglomerate has proposed managing Nairobi’s Jomo Kenyatta International Airport (JKIA), a project awaiting court approval.
A three-judge bench is set to hear a case on December 17, challenging the proposed JKIA lease to Adani. The court must address whether the Public-Private Partnership Act grants it jurisdiction over disputes related to such contracts.
Adani’s legal troubles have not deterred the Kenyan government’s confidence in its ability to deliver on key projects. Critics, however, argue that partnering with a company facing significant fraud allegations could damage Kenya’s reputation and expose the country to financial and legal risks and are questioning whether the government’s commitment to public-private collaboration is overshadowing concerns about transparency and accountability in international partnerships.
Key Allegations Against Adani in U.S. Case
| Allegation | Details |
|---|---|
| Bribery Amount | $250 million (KES 32.4 billion) |
| Targeted Officials | Indian government personnel |
| Expected Profits | $2 billion (KES 259 billion) |
| Legal Action | Arrest warrants issued for executives |