Adani’s Expanding Kenyan Influence Raises Alarm Over Control of Strategic Sectors

By REUBEN MUSONIK, POLITICAL EDITOR

The Adani Group’s rapid expansion into Kenya is raising concerns over its growing control of key sectors, notably aviation and healthcare. This expansion, facilitated through high-profile partnerships with influential Kenyan figures like Jayesh Saini and Safaricom Chairman Adil Khawaja, has sparked a wave of criticism from civil society, with claims that the conglomerate is attempting to dominate crucial industries to the detriment of Kenya’s long-term interests.

Controversy Over Jomo Kenyatta International Airport (JKIA)

A central issue in the debate is Adani’s proposed takeover of Jomo Kenyatta International Airport (JKIA), Kenya’s most important aviation hub. Adani’s subsidiary, Airports Infrastructure PLC, has presented a 30-year concession deal valued at $1.85 billion to the Kenya Airports Authority (KAA), aimed at revamping the airport’s infrastructure, including a new terminal and runway by 2029. However, critics argue that the deal jeopardises Kenya’s sovereignty over a critical national asset. Labour unions and civil society groups fear that Adani’s control over JKIA could result in job cuts, reduced public oversight, and the imposition of dollar-based service fees, raising concerns about the transparency and economic impact of the arrangement.

The growing discontent points to a broader trend of foreign investors gaining control of vital Kenyan infrastructure. Observers are particularly worried about the lack of public scrutiny over such deals, which could have long-term implications for Kenya’s economy and security.

Healthcare Sector: A New Power Base

Adani’s foray into the healthcare sector has similarly sparked concerns. Its partnership with Jayesh Saini, a major player in Kenya’s healthcare industry, has drawn significant attention. Saini, who owns several hospitals including Nairobi West Hospital, has been accused of using his influence to benefit from Safaricom’s partnership with Kenya’s Ministry of Health. This partnership governs the Standard Health Agreements (SHA) responsible for managing healthcare payments across the country.

Critics warn that Saini’s involvement in the SHA could distort competition within Kenya’s healthcare sector, granting preferential treatment to his hospitals while driving up medical costs. Compounding these concerns are allegations that Saini has transferred substantial funds abroad, raising doubts about the local economic benefits of his investments. Safaricom Chairman Adil Khawaja, who played a role in brokering the deal, is also under scrutiny, with accusations of conflict of interest due to his law firm’s involvement in facilitating the transaction.

Public and Political Backlash

The Kenyan public’s reaction has been one of growing alarm. Civil society groups and political leaders have raised objections to what they view as the erosion of Kenya’s control over essential sectors. These deals, according to critics, represent a broader trend of privatisation that benefits a select group of well-connected individuals at the expense of the general population.

Within Kenya’s political arena, the opposition party ODM is under mounting pressure to address the situation. ODM’s historical commitment to safeguarding public resources is being tested as some of its members are accused of having indirect ties to the controversial deals.

Implications for Kenya’s Sovereignty

The concerns about Adani’s expanding footprint in Kenya are emblematic of a larger issue—the potential erosion of Kenya’s sovereignty over its most critical sectors. As foreign entities and their local partners gain increasing control, there is a growing fear that Kenya is losing its capacity to manage its own resources in the best interests of its citizens. These developments raise fundamental questions about how Kenya can strike a balance between attracting foreign investment and retaining control over its economic future.