Energy Cabinet Secretary Opiyo Wandayi has reaffirmed that the controversial deal between the Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions will proceed, despite the recent fraud charges filed against Adani Group founder, Gautam Adani, and two executives. The charges, brought by US authorities, have cast a shadow over the Indian conglomerate’s operations, but Wandayi emphasized that the Kenyan government’s due diligence process remains robust and unaffected by these developments.
The deal, announced in October 2024, involves Adani Energy Solutions financing, constructing, and operating crucial transmission lines and substations across Kenya. The project is worth an estimated KSh 95.68 billion (USD 736 million), making it a significant component of Kenya’s energy infrastructure development. The deal aims to enhance the country’s power distribution network and improve its energy security, supporting the government’s broader goal of achieving universal electricity access.
Wandayi, while addressing the Senate Committee on Thursday, emphasized that the Kenyan government conducted comprehensive due diligence before entering into the agreement with Adani. This diligence was carried out in two phases. The first phase involved a thorough review of all documents provided by Adani Energy Solutions, which outlined the company’s legal, financial, technical, and logistical capacity to execute large-scale projects. The company’s compliance with legal standards, including tax obligations in India, was scrutinized during this phase.
The second phase of the due diligence process involved a team of eight officers from KETRACO and the Directorate of the Public-Private Partnerships (PPP) Unit, who traveled to India to verify the authenticity of the documents submitted during the first phase. According to Wandayi, this verification process confirmed that Adani Energy Solutions met the necessary requirements, including demonstrating its legal standing and regulatory compliance.
Wandayi’s statements come in the wake of fraud charges leveled against Adani and two senior executives by US prosecutors. On Wednesday, a US court indicted Gautam Adani and his associates for an alleged multibillion-dollar fraud scheme, which included bribing Indian government officials to secure solar energy supply contracts. The charges, which span from 2020 to 2024, suggest that Adani and his associates paid bribes totaling over KSh 32.4 billion (USD 250 million) in exchange for contracts that could yield significant profits.
Despite these allegations, a spokesperson for Adani Group has vehemently denied the charges, asserting that the group remains innocent until proven guilty. The company stated that it has always adhered to the highest legal standards and is committed to maintaining transparency in its operations.
In his address, Wandayi clarified that while the Kenyan government is aware of the fraud charges in the US, it does not believe that they are relevant to the ongoing KETRACO-Adani project. He pointed out that the charges relate to different aspects of Adani’s business operations and not to the specific project underway in Kenya. As such, the government will continue with the project based on the findings of the due diligence processes already conducted.
The KETRACO-Adani deal has faced some criticism in Kenya, with critics questioning the integrity of the agreement due to Adani’s controversial reputation and the ongoing legal challenges the group faces. However, the government has insisted that all legal and procedural safeguards have been observed to ensure the project’s transparency and adherence to the highest standards.
Wandayi further assured that no evidence of corruption or bribery has been found concerning the project. “We conducted the due diligence thoroughly, and KETRACO is confident that Adani Energy Solutions passed the test,” he said.
As the fraud case unfolds in the United States, it remains to be seen whether the legal challenges will impact Adani’s business operations globally, including its ongoing projects in Kenya. However, for now, the KETRACO-Adani partnership appears set to proceed, with the government standing by its extensive vetting process and continuing to prioritize the development of Kenya’s energy infrastructure.
