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Raila Backs PPPs, Cautions on Handling Adani-JKIA Deal

254 by 254
October 14, 2024
in Business, Lifestyle, Strategy, Travel
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ODM leader Raila Odinga has highlighted the importance of properly managing Public Private Partnerships (PPPs) for Kenya’s economic future, urging transparency and efficiency in ongoing projects. He emphasized that PPPs are essential, especially given the country’s financial limitations, and are the only viable option for handling large infrastructure projects without excessive borrowing or taxation.

Raila’s remarks, seen as a cautious endorsement of the Adani-JKIA deal, noted that Kenya’s ability to compete in infrastructure development depends on successful PPPs. He warned that mishandling these partnerships could lead to a prolonged period of stagnation, potentially allowing neighboring countries to surpass Kenya’s development efforts.

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Speaking during an ODM retreat in Mombasa, Raila stressed that all concerns about the current PPPs should be addressed to avoid deterring foreign investors. He pointed out that the government has already signed a Sh96 billion deal with Adani Energy Solutions for managing transmission lines, urging agencies to ensure the process is transparent and free of bureaucratic hurdles.

Drawing from his experience, Raila mentioned that many countries have successfully adopted PPPs to tackle similar economic challenges, and Kenya must do the same, particularly in modernizing critical infrastructure such as roads, airports, and energy systems. He cited the pressing need for the expansion of JKIA, which has been operating near full capacity and requires modernization to keep up with regional competitors.

Raila concluded by urging adherence to the PPP Act, emphasizing the need for fairness, cost-effectiveness, and clear communication to maintain investor confidence and prevent misinformation from undermining these efforts.

Tags: airportsand energy systems.expansion of JKIAinfrastructure such as roadsODM leader Raila Odingaproperly managing Public Private Partnerships (PPPs)Raila’s remarks
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