Energy CS Opiyo Wandayi: KETRACO-Adani Project to Proceed Despite Fraud Allegations in the US
Energy Cabinet Secretary Opiyo Wandayi has confirmed that the KETRACO-Adani project deal will move forward, despite recent fraud charges filed in the United States against the Adani Group.
Speaking before the Senate Committee on Thursday, Wandayi assured legislators that the government had conducted extensive due diligence before engaging with the Indian conglomerate.
“The government is unaware of any additional adverse findings that could impact the project,” he said. “We are proceeding based on the outcomes of the due diligence process undertaken.”
Responding to concerns about the potential impact of the emerging allegations, Wandayi stated, “Would this emerging report affect the project in any way? We can’t tell because it is unrelated to this specific deal.”
Comprehensive Due Diligence Conducted
The CS outlined the rigorous steps taken to vet the Adani Group. Under the Private Public Partnership (PPP) Act, the PPP Directorate, in collaboration with KETRACO, conducted a two-phase evaluation to ensure the company met all legal, technical, and financial requirements.
Phase One involved a thorough review of documentation provided by Adani Solutions, including legal, technical, and financial records, as well as proof of compliance with regulations in India, including tax obligations.
Phase Two saw an eight-member evaluation team from KETRACO and the PPP Directorate travel to India to verify the authenticity of the documents submitted during the first phase.
“Based on these efforts, KETRACO concluded that Adani Solutions met all criteria,” Wandayi noted.
He added that there has been no evidence of corruption or bribery in connection with Adani Solutions under Kenya’s PPP framework.
The KETRACO-Adani Deal
On October 11, 2024, Wandayi announced the signing of a Sh95.68 billion (USD 736 million) deal between KETRACO and Adani Energy Solutions Limited. The agreement tasks the Indian firm with developing, financing, constructing, and operating key transmission lines and substations across Kenya.
Fraud Allegations in the US
The announcement comes as Gautam Adani, founder of the Adani Group, faces fraud charges in the United States. Prosecutors accuse Adani, along with two other executives—his nephew Sagar Adani and Vneet Jaain—of orchestrating a multibillion-dollar bribery scheme. Between 2020 and 2024, the trio allegedly paid approximately Sh32.4 billion ($250 million) in bribes to Indian officials to secure lucrative solar energy contracts, which reportedly yielded $2 billion in profits.
In response, the Adani Group issued a statement on Thursday denying the allegations. The company’s spokesperson reiterated that the accusations have yet to be proven in court, emphasizing that Adani remains innocent until proven guilty.
Despite the controversy surrounding the Adani Group, the Kenyan government is confident in its due diligence process and plans to proceed with the KETRACO-Adani project. Wandayi reaffirmed that the allegations abroad do not appear to be linked to the Kenyan deal, emphasizing the project’s critical importance for the country’s energy infrastructure.
