SAM'S SENSE: Lessons after Adani

Exactly one year ago at the State of the Nation address, President William Ruto cancelled twin procurement processes involving Indian conglomerate Adani Holdings, following new information that pointed towards a corruption-ridden corporate.

There was fierce excitement on the floor of the House as Members of Parliament, some of whom had spent weeks defending the Adani-GoK arrangement, hailed the President for being a listening Head of State.

One of the cancelled deals was a Ksh.96 billion contract with KETRACO to build power transmission lines. That decision has since come to haunt the government with negotiations now underway for Kenya to pay Adani Energies a termination fee.

Twelve months later, little has changed. The expansion of the Jomo Kenyatta International Airport (JKIA) remains an intention not a project.

Recently, the President spoke in Qatar about the possibility of partnering with them on the same development, a venture that could cost upwards of Ksh.200 billion.

And as the country reflects on the State of the Nation, it is a moment to examine what the Adani saga has taught us about public procurement and especially public-private partnerships.

For months, media and public scrutiny intensified around the Adani proposals. The government insisted the concerns were disinformation. Whistleblowers were dismissed as cynics.

MPs asking legitimate questions were accused of fronting rival interests. Allegations emerged that senior government officials were eyeing kickbacks. The nation spent months debating whether this was a privately initiated proposal or a privately interested one. 

It later became evident that allies of top government officials were are the center of pushing the Kenya Airports Authority to fast-track review and approval of the Adani-JKIA proposal.

Then one morning, US media reported that authorities there had indicted Indian billionaire Gautam Adani for fraud. President Ruto cited this as, “new information provided by our investigative agencies and partner nations,” claiming adherence to constitutional principles of transparency and accountability.

But one year on, key questions remain: Has the Kenya Airports Authority made any progress in procuring a developer for the JKIA expansion?

Have there been any privately initiated proposals since the Adani affair?

When the President says Qatar could partner with Kenya on the project, is that simply exploratory language or a sign that procurement is already at an advanced stage? In his 163-paragraph speech to Parliament, he dedicated only a single sentence to the JKIA modernization. 

There is no denying that JKIA urgently needs an upgrade if Kenya is to compete globally. Rwanda is already working with Qatar to build its Bugesera airport, with Qatar owning upto 60 per cent of the new facility. 

But Kenya has its own rules, its own laws and a constitution that anchors everything on transparency and accountability. Kenyans cannot be faulted for their skepticism.

They have been abused too many times. They are currently repaying loans amounting to Ksh.12 trillion – at least what is publicly declared.

Big projects have repeatedly been tainted by corruption. Access to information has been restricted from the very beginning of such undertakings. Kenyans feel the strain, and they are determined to avoid any unnecessary future burdens.

Today, taxpayers feel over-policed: heavily taxed and subjected to strict compliance mechanisms. Asking questions about procurement is not pettiness, it is responsible citizenship.

Local suppliers must operate under electronic procurement systems and electronic tax invoicing through e-TIMS, leaving no room to hide. When billions are at stake, there cannot be a different, more lenient standard for government.

If authorities demand strict compliance in revenue collection, demanding the same discipline in expenditure is not too much. Seeking transparency when taking on debt; whether through public-private partnerships, securitisation of future revenues, or a sovereign wealth fund, is not pedantic.