Kenya’s New Energy Vision: A Power Revolution in the Making

Kenya’s New Energy Vision: A Power Revolution in the Making

Kenya has launched bold plans to revolutionise its electricity sector, promising cheaper and more reliable energy for millions. The country is set to benefit massively from the East Africa Power Pool (EAPP), a collaborative initiative spanning 13 member states, aimed at fostering cross-border energy trade and renewable energy solutions.

During the EAPP regional conference, which kicked off on 9 December, leaders unveiled a centralised “Day Ahead Market” (DAM). This market will allow countries to trade energy at competitive rates for next-day delivery, leveraging shared infrastructure and regional interconnections. The initiative, expected to go live by late 2024, is projected to benefit over 600 million people across Eastern Africa by 2025​.

The power pool has already shown impressive growth, with regional electricity trade increasing from 504 GWh in 2005 to over 3,400 GWh annually. Countries like Ethiopia, a major power exporter, will play a pivotal role, although challenges remain for unconnected nations such as South Sudan and Somalia. To address these gaps, the EAPP is pushing forward significant investments in solar, wind, and hydropower, alongside the development of cross-border transmission lines​.

Challenges and Big Moves

The announcement comes shortly after President William Ruto cancelled a controversial Ksh 95 billion power transmission deal with India’s Adani Group. This project aimed to construct high-voltage lines across Kenya, but the government appears more focused on regional cooperation through the EAPP initiative. Recent successes, like the completion of the Kenya-Tanzania electricity interconnection, show the potential for transforming regional energy security.

Broader Impacts

This initiative isn’t just about energy; it’s about economic integration and sustainable development. The system promises transparency and efficiency while ensuring fair energy prices through robust competition. Moreover, it highlights the growing importance of renewable energy as a cornerstone for future power needs across Africa​.

Kenya’s energy transition, supported by key stakeholders like the World Bank and the African Development Bank, marks a critical step towards universal electrification and clean energy leadership in the region. The country is poised to be a hub for regional energy trade, bringing light—literally and figuratively—to millions.

TotalEnergies Hits Brakes on Adani Investments Amid Bribery Allegations – What’s Next for the Indian Giant?

Adani Scandal Shakes Global Scene: U.S. Charges Ripple Through Kenya and India

ADANI SCANDAL SHAKES GLOBAL SCENE: U.S. CHARGES ROCK KENYA AND INDIA

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The embattled Adani Group has been thrust into the global spotlight yet again, as its CEO Gautam Adani and seven senior executives face indictment in the United States over a staggering $250 million (approximately Ksh32 billion) bribery scheme. Just a week prior, Kenya’s Transport Cabinet Secretary Davis Chirchir defended the Indian conglomerate, vouching for its integrity before Parliament and refuting allegations of corruption.

Kenyan Government’s Defence of Adani

On November 14, Chirchir assured Kenyan lawmakers that the Adani Group was above reproach. “Adani has not been barred by any country, has no history of corruption based on our due diligence, is solvent, and is tax compliant in all jurisdictions where it operates,” he declared confidently. He also emphasised that the directors of Adani had no recent criminal convictions or disqualifications.

The timing of Chirchir’s defence has become glaringly ironic in light of the U.S. Department of Justice’s (DOJ) explosive charges. The indictment alleges that the Adani Group orchestrated a scheme to bribe Indian government officials to secure lucrative green energy contracts while misleading U.S. investors.

Details of the Indictment

Deputy Assistant Attorney General Lisa Miller announced that the DOJ had unearthed a sophisticated corruption network that funnelled bribes to Indian officials from 2020 to 2024. The goal was clear: manipulate state energy supply contracts to benefit the group’s Adani Green subsidiary, raking in a projected $2 billion (approximately Ksh259 billion) in profits over two decades.

The DOJ’s case is bolstered by substantial evidence, including:

• Documents detailing bribe amounts.
• Digital evidence, such as cellphone data and PowerPoint presentations used to track the scheme.
• Testimonies from whistleblowers privy to the inner workings of the corruption.

The charges extend beyond the green energy bribery scandal, implicating Gautam Adani, his nephew Sagar Adani, and another executive in a separate $175 million (approximately Ksh22 billion) scheme linked to fraudulent contracts in India.

Kenya’s JKIA Deal Under Scrutiny

Adani’s woes have amplified criticism of Kenya’s controversial negotiations over the Jomo Kenyatta International Airport (JKIA). The potential 30-year contract would hand over operational control of the airport to the Adani Group, sparking public outcry.

Since the whistleblower revelations, lawsuits have surfaced worldwide accusing Adani of fraudulent activities. Despite these allegations, Chirchir has consistently defended the government’s due diligence process, dismissing concerns as unfounded.

A Questionable Track Record

Adani’s troubles are not new. The group has faced accusations of environmental violations, labour exploitation, and opaque financial dealings. However, the U.S. charges mark a significant escalation, directly implicating Adani’s leadership in criminal activities.

Critics in Kenya have questioned why the government continues to engage with a company under such intense international scrutiny. “This is not just a Kenyan issue,” remarked one opposition MP. “This is about protecting our nation’s reputation and ensuring public resources are not mismanaged.”

Implications for Kenya and Beyond

The indictment raises serious questions for Kenya’s leadership:

1. Was due diligence compromised? The government’s insistence on Adani’s clean record now appears questionable.
2. What are the risks of proceeding with the JKIA deal? If signed, the contract could expose Kenya to significant reputational and financial liabilities.
3. Will public trust erode further? Kenyans are increasingly sceptical of deals perceived as opaque or tainted by corruption.

Adani’s Response

The Adani Group has denied all allegations, labelling them as politically motivated attacks. In a statement, the company claimed, “We remain committed to transparency and ethical business practices. These charges are baseless and will be vigorously contested in court.”

Kenya at a Crossroads

For Kenya, the Adani scandal is more than just a corporate controversy; it is a test of governance and accountability. As the story unfolds, the government will face mounting pressure to revisit its partnerships and reassure citizens that public interests come first.

Will Kenya sever ties with Adani to preserve its reputation, or will it double down on its defence of the embattled conglomerate? Only time will tell.

Stay tuned for updates on this unfolding saga.

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Scandal as 104 Billion-Shlling Software ‘Heist’ Exposed at New SHIF/SHA

By MWAI WACHIRA, SOFTWARE DEVELOPER

Kenya’s latest healthcare reform, the transition from the National Health Insurance Fund (NHIF) to the State Health Insurance Fund (SHIF), has erupted into a scandal of massive proportions, with critics branding it a “heist” of epic proportions. Behind the promises of modernisation and improved services lies an alleged plan to funnel billions of shillings into private pockets under the guise of implementing a new software system.

104 Billion Reasons to Question SHIF

The centrepiece of the controversy is the staggering KES 104 billion price tag for a software platform designed to manage SHIF operations. Critics, including software developers and public commentators, argue this is an astronomical overcharge. Industry insiders estimate the true cost of developing such a platform to be between KES 500 million and KES 1 billion at most.

So, why the massive markup? A consortium of three companies has been tasked with delivering the platform:

• A firm linked to Adani Group, infamous for its controversial business practices.
• Safaricom, Kenya’s telecoms giant, whose role in software development remains unclear.
• A company associated with David Ndii’s wife, raising eyebrows over potential conflicts of interest.

The consortium’s composition and lack of prior expertise in software development have only fuelled suspicions.

Who Gets What?

The alleged breakdown of the consortium’s spoils reads like the script of a heist film:

• The Adani-linked firm reportedly holds 60%, pocketing a cool KES 6 billion annually for the next decade.
• Safaricom and the Ndii-linked company each hold 20%, earning KES 2 billion annually.

With these payouts slated for ten years under a Public-Private Partnership (PPP) arrangement, the Kenyan public is effectively funding a KES 104 billion bonanza for private entities.

“Why Not Upgrade NHIF?” Critics Ask

The NHIF already had a functioning software system that could have been upgraded to meet SHIF’s needs at a fraction of the cost. Critics argue that abandoning this system in favour of an entirely new platform smacks of ulterior motives.

“The NHIF system was working well. It would’ve cost peanuts to tweak it for SHIF’s requirements,” one tech expert noted. “Instead, we’re paying for a Rolls Royce to do a bicycle’s job.”

Kenyan Talent Snubbed

Kenya boasts world-class programmers capable of delivering the required platform locally. Yet, the consortium is expected to outsource the actual software development to Indian contractors, paying standard market rates. This approach not only undermines local talent but also allows the consortium to rake in exorbitant profits.

The Public Loses Twice

Under NHIF, 5% of annual contributions went toward operational costs, amounting to KES 15 billion from KES 300 billion collected annually. With SHIF, KES 10 billion annually will now flow to the consortium, leaving only KES 5 billion for administrative expenses.

This funding gap could cripple SHIF’s ability to deliver services, potentially leading to longer waiting times, reduced benefits, and a further strain on Kenya’s already struggling healthcare system.

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A Trail of Questions

As details of the SHIF saga emerge, Kenyans are left grappling with unsettling questions:

• Why was the existing NHIF software discarded instead of upgraded?
• Was the tendering process for the SHIF platform truly competitive and transparent?
• How will SHIF sustain itself with diminished operational funds?
• Most importantly, who ultimately benefits from this KES 104 billion deal?

Public Outcry and Political Fallout

News of the alleged “heist” has ignited public outrage, with Kenyans taking to social media to vent their frustrations. Hashtags like #SHIFScam and #HealthcareHeist are trending as citizens demand accountability.

Opposition leaders have also seized the moment, calling for a parliamentary inquiry into the deal. “This isn’t just a misuse of public funds—it’s a betrayal of every Kenyan who relies on affordable healthcare,” one MP declared.

The Shadow of Adani

The involvement of a firm linked to the Adani Group has added an international dimension to the scandal. Known for its controversial business practices, the group’s participation raises red flags about the deal’s integrity. Some speculate that the Adani-linked firm could be a front for undisclosed beneficiaries, further muddying the waters.

The Human Cost

Amid the financial intrigue, it’s easy to lose sight of what’s truly at stake: the health and wellbeing of millions of Kenyans. With billions diverted away from patient care and medical infrastructure, the most vulnerable members of society are likely to bear the brunt of the fallout.

“This is more than a financial scandal. It’s a moral failure,” one healthcare advocate lamented. “People will die because money meant for their treatment is being siphoned off into private hands.”

Kenya’s Moment of Reckoning

The SHIF scandal underscores deeper issues in Kenya’s governance, from weak oversight mechanisms to a culture of impunity among the elite. For many, it’s a wake-up call to demand greater transparency and accountability in how public funds are managed.

As the story unfolds, one thing is clear: the SHIF heist is about more than just money. It’s a battle for the soul of Kenya’s healthcare system—and for the trust of its people.

Stay tuned as we continue to expose the twists and turns of this developing scandal. Who will be held accountable? Will SHIF crumble under the weight of its own controversy? Only time will tell.

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Kenyans to Drink More as KBL Unveils Festive Season Price Cuts and Holiday Campaigns!

Kenya Breweries Limited (KBL), a subsidiary of East African Breweries Limited (EABL), has announced a strategic price reduction for its Mainstream Spirits (MSS) portfolio ahead of the festive season. The initiative covers popular brands like Chrome Gin, Chrome Vodka, Kane Extra, and Triple Ace Vodka, with prices slashed by up to Ksh60 for 750ml bottles and up to Ksh30 for 250ml bottles. The move aligns with KBL’s goal to make its premium-quality products more accessible during a time when families and friends come together to celebrate.

In addition to the price cuts, KBL is leveraging the festive season to deepen engagement through campaigns like the Tujengane and Wrap Up initiatives. Tujengane focuses on community upliftment, offering prizes such as motorbikes, rent waivers, and shopping vouchers through a consumer draw. Meanwhile, the Wrap Up campaign provides custom wrapping options for alcohol gift packs, enhancing the holiday experience. A partnership with the Tis the Season Christmas concert series further underscores KBL’s efforts to connect with consumers during this time​.

KBL’s financial performance has been strong, with spirits sales contributing significantly to its Ksh124.1 billion revenue in the 2023/24 fiscal year. The price reductions and campaigns aim to sustain growth by appealing to cost-sensitive consumers amid economic challenges while strengthening brand loyalty​.

For more details on the festive promotions, visit the official campaign pages or follow KBL’s updates.

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Treasury CS Mbadi Defends New Digital Tax Plan, Targets Multinational Firms

Mbadi New Taxes

Proposed Tax Reforms Target Multinationals, Not Kenyan Users: Treasury CS Mbadi Explains

NAIROBI, Kenya — Treasury and Economic Planning Cabinet Secretary John Mbadi has clarified the government’s intentions behind proposed taxes on digital and social media platforms, stating they are targeted at multinational firms rather than individual Kenyan users.

While addressing the National Assembly Finance Committee, Mbadi reassured the public that the new tax measures under the Tax Laws (Amendment) Bill 2024 aim to ensure foreign companies conducting business in Kenya contribute fairly to the country’s economy.

“Why would we just tax our Kenyans who are using these platforms while the owners of these platforms are not paying anything?” Mbadi queried, seeking to dispel misconceptions about the tax proposals.

Expanded Definition of Digital Marketplace

The amendment to Section 3 of the Income Tax Act broadens the definition of “digital marketplace” to include sectors such as:

• Ride-hailing services
• Food delivery services
• Freelance services
• Professional services

This revised definition is designed to capture income generated from businesses operating through digital or electronic platforms within Kenya.

Significant Economic Presence Tax (SEPT)

The Bill proposes replacing the current 1.5% Digital Presence Tax with a 6% Significant Economic Presence Tax (SEPT). Mbadi explained that SEPT focuses on multinational companies benefiting from Kenya’s infrastructure without adequately contributing to its maintenance and development.

“The internet connectivity that these platforms rely on is funded by Kenyan taxpayers. It’s only fair that part of their proceeds help maintain that infrastructure,” Mbadi emphasized.

Minimum Top-Up Tax (MTUT)

Alongside SEPT, Mbadi introduced the Minimum Top-Up Tax (MTUT), a measure to counteract tax base erosion by multinational enterprises.

• MTUT mandates a minimum effective tax rate of 15% for companies with an annual consolidated turnover exceeding Ksh100 billion.
• Firms paying below this threshold will be required to “top up” their contributions to meet the set rate.

Mbadi underscored the necessity of this reform, stating: “These multinational corporations with turnovers above Ksh100 billion must contribute their fair share. The 15% minimum tax ensures fairness and supports our infrastructure and public services.”

Public Concerns and Mbadi’s Reassurance

Amid public concern that the reforms might stifle Kenyans’ social media activities, Mbadi clarified that the focus remains on revenue generated by foreign corporations operating within the digital marketplace.

“This is not about raiding social media,” he asserted. “We are targeting foreign companies making profits here to ensure part of that stays in Kenya.”

Mbadi urged lawmakers and the public to support SEPT and MTUT as critical tools for ensuring multinational corporations contribute fairly to Kenya’s economy.

“These measures will not only generate much-needed revenue but also promote fairness and equity in our tax system,” he concluded.

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Dollar Surge Knocks the Kenyan Shilling as Demand Soars Post-U.S. Election

By Reuben Muisonik, Political Editor, The Dispatch Digital

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The Kenyan shilling has taken a slight hit, dipping against the mighty greenback for the first time in several weeks as dollar demand heats up in the wake of the recent U.S. presidential election. On Wednesday, November 13, the shilling traded at 129.00/129.30 per dollar, a minor decline from Tuesday’s 128.50/129.50 rate. The shift comes amid heightened interest in the dollar, which has surged in appeal since the election results.

Traders suggest this dollar demand spike could continue. “With the dollar looking attractive, we’re seeing investors start buying dollars and moving them back into the U.S. markets,” one trader revealed to Reuters.

The U.S. currency’s upswing is not just affecting Kenya; currencies worldwide are feeling the impact as investors shift their focus to the dollar, drawn by its renewed allure and promising returns in the American market. This currency shuffle reflects the global financial ripples set off by Donald Trump’s win, as investors hedge their bets on U.S. assets.

Kenya’s Shilling Holds Ground, Supported by Tourism and Remittances

Despite the current fluctuations, the Kenyan shilling has displayed relative resilience in recent months. For much of the year, it held steady around the Ksh128.50/Ksh129.50 mark, with October 19 marking the highest exchange rate in recent memory.

This stability is no accident—Kenya’s shilling strength has been bolstered by strong tourism inflows, solid diaspora remittances, and thriving agricultural exports, especially from its prized tea sector. And with the festive season on the horizon, remittances from Kenyans abroad could keep up this positive trend, giving the shilling a cushion.

A Strong Year for Forex Reserves

Kenya’s foreign exchange reserves also tell a story of resilience, reaching an impressive USD 9.32 billion (approx. Ksh1.2 trillion) as of November 7. This high marks a notable increase from January’s USD 6.82 billion (about Ksh879.7 billion), reflecting careful fiscal manoeuvres by the Central Bank. Analysts credit the government’s successful Eurobond repayment of Ksh310 billion ($2 billion) earlier this year with boosting investor confidence and aiding the currency’s strength in 2024.

However, it hasn’t been all smooth sailing. A blow came when global credit-rating agencies downgraded Kenya’s credit rating from “B3” to “Caa1”. The downgrade, signalling higher perceived risks for Kenya, put the shilling under pressure as investor caution surged.

As markets watch the unfolding U.S. financial landscape, Kenyan traders and policymakers remain vigilant, hoping to keep the shilling afloat amidst the dollar’s resurgent appeal.

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ICS Launches 13th Champions of Governance Awards

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.

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Swiss Authorities Freeze $310 Million Linked to Adani Group Amid Money Laundering Probe!