The Government did due diligence on Adani Power, CS tells Energy Committee

The Government did due diligence on Adani Power, CS tells Energy Committee

𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟐𝟏, 𝟐𝟎𝟐𝟒
𝐁𝐮𝐧𝐠𝐞 𝐓𝐨𝐰𝐞𝐫𝐬, 

The Cabinet Secretary for Energy, Opiyo Wandayi, today appeared Senate Standing Committee on Energy to deliberate on the rationale behind KETRACO-Adani projects.

The committee also discussed the issue of exclusion from the National Grid of regions that are historically marginalised Counties such as Wajir, Marsabit, Mandera, and Turkana which comprise nearly 80% of Kenya’s land mass but which remain unconnected to the national grid.

The meeting also discussed the details on current and planned electricity connectivity initiatives, measures and strategies being undertaken to ensure equitable energy access through the integration of historically marginalised counties, specifically Wajir, Marsabit, Mandera, and Turkana into the national grid. 

Tana River Senator Danson Mungatana asked the Cabinet Secretary why in the all outlined KETRACO transmission projects costed at Ksh. 95 billions, none of them is undertaken in the coastal counties. He also wondered why KETRACO doesn’t have electricity transmission allocation in the Northern Coast.

He said that investors are not going to Northern Coast due to lack of power connectivity. 

Principal Secretary Alex Wachira said that when President visited South Korea, he negotiated a loan that will connect Northern Coastal region to National Grid.

Narok Senator Ledama Ole Kina asked the Cabinet Secretary, “The chairman of Adani group is indicted in USA over bribery claims, how will that indictment affect this project?”

He also asked why KETRACO is focusing on already connected counties rather than opening up the neglected counties of Mandera, Wajir and Turkana which are not connected on the national grid.

The Cabinet Secretary for Energy said that no part of the country will be left out in the transmission master plan. He added that the ministry did due diligence on Adani Power and that Adani passed the test under section 40 of Public Private Partnership Act. 

He said that no bribes were issued in Privately Initiated Partnership involving Adani Power. The Cabinet Secretary said that that the Consortium Africa 50 cannot be compared to Adani due to capacity of Adani in undertaking huge electricity transmission projects all over the world.

The Principal Secretary Alex Wachira said that Adani Power are expected to undertake four projects with different terrains in the Kenya and that is why the cost of each project is different. He added that Kenya has moved from consuming 1000 to 3300 megawatts which has created pressure on the existing transmission infrastructure. 

Further, he said that Turkana County will be connected to National grid by April 2026 from Lokichar at cost of Ksh. 900m.

Nairobi Senator Sifuna asked the Cabinet Secretary i the constitution principles of procurement were followed and if KETRACO did due diligence on Adani Power Limited an independent audit firm was used to do the due diligence.

Kakamega Senator Dr. Boni Khalwale sought clarification from the minister whether the Government of Kenya will trust Adani Group with the indictment of Adani Group in USA over bribery claims? 

He added, “In view of the seriousness of the indictment of Adani Group in the US do you think due diligence requires to be reconsidered or audited? 

He further alleged that Adani Group has a record of bribery.

Vice Chairperson of the Committee, Elgeyo Marakwet, Senator William Kisang said that the Cabinet Secretary for Energy needs to clear the air by providing the due diligence reports that cleared Adani Power to undertake four KETRACO transmission projects.

Senator Danson Mungatana asked why the Cabinet Secretary of Energy was insisting that the Adani Power projects proceed regardless of the indictment of Adani Power Group in the USA. 

Cabinet Secretary for Energy, Opiyo Wandayi said that in the in transmission master plan, Kenya intended to build 90 power transmission lines to complete the national grid network. He further states that proposal met the PIP requirements, the proposal passed the test.

“What we have done due diligence in compliance to Public Private Partnerships ACT. We went out of our way as government did due diligence. We shall avail the due diligence report. We went to PIP because of the risk, most of the risk is on the proponent Adani Power Group.” Said Cabinet Secretary, Opiyo Wandayi.

The Cabinet Secretary was accompanied in the meeting by KETRACO Managing Director, Dr. Eng. John Mativo and Principal Secretary for Energy, Alex Kamau Wachira.