In The Eye Of Another Storm: Why Adani's Nairobi Sojourn Has Sparked Controversy

Adani Group is once again in a storm, but this one is brewing closer to home.

Congress General Secretary (Communications) Jairam Ramesh has sounded the alarm over Adani’s proposed takeover of Nairobi’s Jomo Kenyatta International Airport (JKIA), warning that the ongoing anti-Adani protests in Kenya could "convert into anger against India and the Indian Government."

In March this year, Adani Group submitted a privately initiated proposal (PIP) for a 30-year concession to expand and operate JKIA under a “build, operate, transfer” model.

However, the proposal has sparked unrest among Kenya Airports Authority (KAA) employees, who recently staged a strike over concerns about job security and the implications of Adani’s involvement.

Ramesh’s concerns, though politically charged — as the Congress party frequently accuses the Modi government of having close links with the industrialist — have shed light on the issues surrounding the deal.

To start with, the PIP for the project, as opposed to the traditional “competitive bidding procedure,” has raised eyebrows.

A feasibility study by Spanish consulting firm ALG recommended "competitive bidding" to “maximize the value-for-money for the Contracting Authority,” but Adani argued that a PIP allows the government to secure terms beyond financial considerations, ensuring citizen welfare.

As if that weren’t enough, on Friday (30 August), the company advanced its plans by incorporating a new entity, Airports Infrastructure PLC (AIP), in Nairobi, according to a regulatory filing.

Meanwhile, back home, the opposition, particularly the Congress, has seized on this issue as fresh ammunition against the government. Similar controversies around Adani projects in Sri Lanka and Bangladesh have “undermined our national interest” and contributed to “bad outcomes” for India, Ramesh wrote on X.

He pointed to the Bangladesh government’s contract to purchase power from Adani’s coal plant in Jharkhand, which became a flashpoint in protests that eventually led to Prime Minister Sheikh Hasina’s resignation on 5 August.

In Sri Lanka, Ramesh noted that Adani Group’s renewable energy projects in the Mannar district were similarly mired in controversy and played a role in the widespread protests against the Sri Lankan government in 2022.

Beyond the domestic political rumblings, the Kenyan government is defending the deal as necessary to address the airport’s infrastructure issues, such as power outages and leaking roofs. However, concerns persist that the deal is being rushed, with reports that a team of 16 from the KAA is already in India for due diligence.

As Adani navigates the turbulence, it must address the concerns of aviation workers and provide transparency on project specifics to prevent further unrest. At the same time, India’s domestic politics must transcend partisanship to support the global ambitions of Indian companies.

Indian companies have been slow to expand internationally, and the few attempts they make are crucial. If this deal falls through due to political wrangling and a lack of transparency, it could create an opening for China, which has already made significant inroads in Africa.

China's influence in Kenya is exemplified by its construction of a 27.1-km expressway from downtown Nairobi to the international airport under the Belt and Road Initiative (BRI), a project that has been praised for creating local jobs and boosting economic and social development.