Treasurer John Mbadi has struggled to persuade a Senate committee investigating a deal between the Ruto government and Indian contractor Adani when it was in opposition.
Mbadi was meeting with his former Senate Minority colleagues as he sought to explain why President William Ruto’s administration awarded the refurbishment of Jomo Kenyatta International Airport to Adani Airports Holdings despite other companies expressing interest.
Mbadi told the Senate Committee on Roads and Transport that he was not aware of two other companies expressing interest in the project.
Kisii senator Richard Onyonka presented letters from three companies hoping to carry out the project, one of which was Adani, and questioned Mbadi whether he had any documentation to show that other companies had been turned down before Adani was awarded the contract.
“I would like to ask whether Mr Mbadi is aware that Indian Prime Minister Narendra Modi controls 58% of the Adani empire, the state of Abu Dhabi holds shares in the Adani empire and there are several associated companies which are trying to take over different sectors of the Kenyan economy,” Onyonka asked.
He said other companies such as India’s GMR and America’s Nexus Logic have also expressed interest in the project. Onyonka submitted a letter addressed to the transport secretary, which had been received and stamped by the Kenya Airports Authority.
Mbadi responded that he was not sure whether the letter submitted by Onyonka had reached the Treasury’s Public Private Partnership Department, which appears to contradict statements by Minister of Roads and Transport Davis Chirchir, who told the committee that no such letter existed.
The CS told the committee, chaired by Kiambu state senator Kalungo Tanwa, that he had not received any letters of interest from companies other than Adani to do business with JKIA, sparking outrage among senators who accused Mbadi of gatekeeping for Adani.
“I would like to ask my brother Mbadi not to be a gatekeeper for Adani Limited because all government officials who appeared before this committee appear to be advocating for Adani Limited rather than defending the interest of the country. I am asking my brother not to take that path,” Onyonka said.
PPP Executive Director Christopher Quirigua, who accompanied the CS to Parliament, told the committee that other companies had also submitted proposals but the only one submitted to the National Treasury was Adani’s. He said the proposal was submitted in April 2023.
Senator Okiya Omtata from Busia noted that information in his possession showed that Mr Kirigua had been appointed Deputy Chief of Mission at the Kenyan Embassy in Washington DC, and wondered for whom he was still gatekeeping before leaving the country.
Nairobi Senator Edwin Sifuna questioned Mbadi about the private sector submitting the proposal, pointing out that documents showed the proposal was submitted by Transport Commissioner Mohammed Duggal and not the Kenya Airports Authority. Sifuna argued that it was the Kenya Airports Authority that should be held responsible.
Sifuna said the filing by Adani Limited was an unauthorized self-declaration. The senator asked whether Adani only operated within India. Mbadi said he was not aware of where else the company operated.
Nandi senator Samson Cherargey asked Mbadi if he was aware that the Adani Group had subsidiaries in the country and was poised to control different sectors of the economy. Mbadi said he had no idea.
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“Are you aware that former Transport Minister Kipchumba Murkomen said in the Senate last year that the tender for the development of JKIA would be solicited internationally? What has changed with Adani being given preferential treatment by the government?” Cherargei asked.
Nominated Senator Peris Tobiko told Mbadi that a company was building an airport in Rwanda at a cheaper rate.
“As Cabinet Secretary, I have no power to stop this process because there are other agencies involved in this matter and if there are any issues, they will be dealt with accordingly. We all agree that the airport needs improvement,” Mbadi said.
He was at pains to explain that the Public-Private Partnership Office has not approved any stage of the private proposal by Adani Airport Holdings Pvt Ltd for the acquisition of Jomo Kenyatta International Airport.
Addressing senators who expressed dissatisfaction, the Cabinet Secretary said the project was currently in the negotiation stage following approval by the Public-Private Partnership Committee at its 47th regular meeting held on August 21, 2024.
He said a team comprising Kenya Airports Authority, Kenya Ministry of Transport, Kenya Legal Services and National Treasury Public-Private Partnership Department was in the process of conducting comprehensive due diligence exercise to establish the necessary capacity for Adani Airports Holdings Pvt. Ltd to deliver the project.
“Kenya Airports Authority is currently conducting comprehensive due diligence exercises to establish the necessary capacity of Adani Airports Holdings Pvt Ltd and stakeholder engagement of the project for social acceptability,” Mbadi said.
He stressed that Kenya Airports Authority and Adani Airports Holdings Limited have not entered into a Project Development Agreement as provided for in Section 43(7) of the PPP Act 2024 as the execution of a Project Development Agreement is optional and not a mandatory requirement.
Mbadi told the Senate committee that following the approval of the proposal to proceed to the project development stage, the proponent would carry out a feasibility study and submit the findings to the Kenya Airports Authority for review.
