Gautam Adani, chairman of Adani Group.
Reuters
By David Herbling, P R Sanjai and Helen Nyambura
Billionaire Gautam Adani’s proposal to run Kenya’s main airport has sparked protests, Senate hearings and lawsuits against the group controlled by Asia’s second-richest man, even as it bags a deal to construct high-voltage power transmission lines in the East African nation.
A court has already frozen Adani’s unsolicited bid to expand Jomo Kenyatta International Airport, while strikes at the facility and criticism from opposition lawmakers has forced the government to defend the opaque circumstances surrounding the deal. It comes amid allegations that Adani’s $203 billion empire is under a Swiss probe for money laundering, which the group denies.
“From the very beginning, there has been a general pattern by the government to hide from the public what is contained in the Adani deal,” Governor Anyang’ Nyong’o, leader of the opposition Orange Democratic Movement, wrote in Kenya’s The Star newspaper this week. “Past similar projects that circumvented transparent dealings and formal institutional mechanisms litter our history as major scandals.”
Adani is perceived as a close ally of Indian Prime Minister Narendra Modi, whose activities are seen as part of India’s efforts to counter the reach of its rival China in resource-rich Africa. The Kenyan government last week submitted a written explanation to lawmakers of why the proposal was above board.
Adani Group said its proposals followed procedures.
“While no contract has been awarded, both our proposals — related to the airport and transmission projects — were submitted in accordance with the government of Kenya’s Public Private Partnership Act of 2021, in the normal course of business,” a spokesperson told Bloomberg News. “As a law-abiding company, Adani is committed to full compliance with all relevant laws, policies and regulations in every jurisdiction where we operate.”
Lawsuits and Hearings
As news of the Adani deal spread in early September — fed by documents released by a whistleblower on X — striking airport workers fearing for their jobs ground the facility to a halt, stranding passengers. Days earlier, a Kenyan high court temporarily froze the project, which would grant Adani Airports Holding Ltd. a concession to run it for 30 years, after the constitutionality of the lease was challenged.
The case, brought by the Kenya Human Rights Commission and Law Society of Kenya, argued the proposed development would require investment of $1.85 billion, which Kenya could raise itself without having to bow to Adani’s terms.
What’s most angered Kenyans — simmering over frequent scandals about state corruption that have sparked street protests and deadly responses from the security forces — is the veil of mystery shrouding the deal.