Why ADANI? Is it a Premeditated Done Deal? Unpacking Deep-Rooted Intransparency In Kenya's Public-Private Partnerships.

Author: George Nyanaro.

The proposed deal between Adani Airport Holdings and the Kenyan government for managing and expanding Jomo Kenyatta International Airport (JKIA) has raised significant concerns about transparency and the integrity of public-private partnerships (PPPs) in Kenya. This piece critically examines whether the Adani deal is a premeditated arrangement and explores the deep-rooted issues of intransparency in Kenya’s PPP framework.

The Adani Deal: A Premeditated Arrangement?

The speed and manner in which the Adani deal has progressed have led many to question whether it was a premeditated arrangement. The proposal, which involves a Ksh. 238 billion investment by Adani to upgrade and expand JKIA, was submitted in March 2024. Remarkably, the feasibility study was approved within just 17 days, raising eyebrows about the thoroughness and transparency of the approval process.

Lack of Competitive Bidding.

One of the primary concerns is the absence of a competitive bidding process. Typically, large-scale infrastructure projects undergo a rigorous tendering process to ensure that the best and most cost-effective proposals are selected. However, in the case of the Adani deal, there appears to have been no open tender, leading to suspicions that the deal was prearranged. This lack of competition not only undermines the principles of fairness and transparency but also raises questions about the potential for corruption and favoritism.

Government’s Justification.

The Kenyan government has defended the deal, arguing that it cannot afford the necessary upgrades to JKIA on its own. Officials have emphasized that the airport is not being sold but leased for development, with Adani expected to operate it for 30 years before handing it back to the government. While this argument highlights the financial constraints faced by the government, it does not address the concerns about the opaque nature of the deal.

Deep-Rooted Intransparency in Kenya’s PPPs.

The Adani deal is not an isolated incident but rather a symptom of broader issues within Kenya’s PPP framework. Intransparency has long plagued PPP projects in the country, leading to public distrust and skepticism.

Historical Context.

Kenya has a history of controversial PPP projects that have been marred by allegations of corruption and lack of transparency. For instance, the Standard Gauge Railway (SGR) project, which was financed by Chinese loans, faced significant scrutiny over its cost and the opaque nature of the contracts involved. Similar concerns have been raised about other infrastructure projects, such as the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor.

Legal and Institutional Framework.

While Kenya has established legal and institutional frameworks to govern PPPs, their effectiveness has been called into question. The Public Private Partnerships Act of 2013 was intended to provide a clear and transparent process for PPP projects. However, the implementation of this framework has been inconsistent, with many projects proceeding without adequate oversight or public consultation.

Lack of Public Participation.

A critical aspect of transparency in PPPs is public participation. Involving stakeholders, including local communities and civil society organizations, in the decision-making process helps ensure that projects are aligned with public interests and that potential negative impacts are mitigated. Unfortunately, public participation has often been sidelined in Kenya’s PPP projects. The Adani deal, for example, has faced significant public outcry and protests from airport workers and legal challenges from organizations like the Kenya Human Rights Commission and the Law Society of Kenya.

The Way Forward.

Addressing the deep-rooted intransparency in Kenya’s PPP framework requires a multifaceted approach. Here are some key recommendations:

Strengthening Legal and Institutional Enforcement Frameworks.

 The existing legal and institutional enforcement frameworks governing PPPs need to be strengthened to ensure greater transparency and accountability. This includes enforcing the provisions of the Public-Private Partnerships Act of 2013 and ensuring that all projects undergo a competitive bidding process.

Enhancing Public Participation.

Public participation should be an integral part of the PPP process. This involves engaging stakeholders at all stages of the project, from planning and feasibility studies to implementation and monitoring. Mechanisms for public consultation and feedback should be established to ensure that the voices of local communities and civil society organizations are heard.

Improving Oversight and Accountability.

Effective oversight and accountability mechanisms are essential to prevent corruption and ensure that PPP projects are implemented in the public interest. Independent bodies, such as the Office of the Auditor-General and the Ethics and Anti-Corruption Commission, should be empowered to monitor PPP projects and hold those involved accountable for any wrongdoing.

Promoting Transparency in Contracting.

Transparency in the contracting process is crucial to building public trust in PPP projects. All contracts and agreements should be made publicly available, and the criteria for selecting private partners should be clearly defined and adhered to. This will help ensure that projects are awarded based on merit and that the best proposals are selected.

Conclusion:

The Adani deal for the management and expansion of JKIA has highlighted significant concerns about transparency and the integrity of Kenya’s PPP framework. The lack of competitive bidding, rapid approval process, and absence of public participation have led many to question whether the deal was premeditated. Addressing these issues requires strengthening legal and institutional frameworks, enhancing public participation, improving oversight and accountability, and promoting transparency in contracting. Only by taking these steps can Kenya ensure that its PPP projects are implemented in a transparent and accountable manner, ultimately benefiting the public and fostering sustainable development.