William Ruto defends Adani’s PPP deals in Kenya: “They are using your money”

• President William Ruto has urged Kenyans to appreciate Public Private Partnership (PPP) agreements as they offer a win-win solution for all major projects
• The leader of the United Democratic Alliance (UDA) insisted he does not intend to burden taxpayers with more loans, arguing that PPP is the way to go
• Adani Group has signed a KSh 94 billion deal with Kenya Electricity Transmission Company Limited (KETRACO) to build new transmission lines

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business and technology reporting and offers deep insights into global and Kenyan economic trends.

President William Ruto has strongly defended the Public Private Partnership (PPP) agreements involving India’s Adani Group, noting that the conglomerate is investing using its funds.

What William Ruto said about the Adani-KETRACO deal

Ruto said he does not intend to burden taxpayers with more loans and argued that PPPs are the way to go.

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Speaking during the inauguration of the 35 MW Orpower 22 Power Station in Menengai, Nakuru County on Thursday, October 24, the President urged Kenyans to appreciate PPPs as they offer a win-win solution for all major projects.

“The Adani group is investing KSh 95 billion in the transmission line. Otherwise, we would have gone and borrowed that money and burdened the people of Kenya. We will pay for that transmission line using a running fee that has been negotiated, and it is It is important for us as a nation to understand that a partnership between the public and private sectors provides us with a win-win outcome,” Ruto explained.

What is Kenya’s power transmission expansion plan?

The agreement with Adani Energy Solutions comes as KETRACO leverages its Transmission Master Plan 2023-2042, which outlines the need for 5,672 kilometers of new high voltage lines.

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The plan estimated that the system’s maximum demand would increase from 2,149 MW recorded in 2022 (base year) to 6,093 MW in 2042.

KETRACO noted that electricity consumption was expected to increase from 12,985 GWh in 2022 to 36,291 GWh in the baseline scenario, 61,523 GWh in the vision scenario and 31,506 GWh in the low scenario by 2042.

JKIA-Adani Agreement

This followed a similar controversial lease agreement between sister company Adani Airport Holdings and the Kenya Airports Authority (KAA).

Adani Airport Holdings, a subsidiary of the Adani Group, sought to take over the management of Jomo Kenyatta International Airport (JKIA) under the PPP model for a period of 30 years.

According to Adani Group’s concessional agreement with KAA, the government will receive more than KSh 6 billion from the company’s profit in its first year of operation.

Review by Mercy Nyambura Guthua, Journalist and Editor at TUKO.co.ke

Source: TUKO.co.ke