Ruto's Sh5tr projects haunted by ghosts of Adani

When President William Ruto revealed his latest infrastructure plan that could cost the country Sh5 trillion, he raised a lot of eyebrows.

The grand plan involves development and upgrading of an extensive transport and logistics network that he said would accelerate national development, connect products to markets, move goods and services, and lower the cost of doing business.

“As the region’s economic and diplomatic hub, home to the UN’s largest office in the Global South, and the sixth-largest economy in Africa, Kenya must maintain world-class seaports, airports, highways, and digital corridors,” said Ruto during his State of the Nation address in Parliament on Thursday.

Even he was quick to acknowledge the huge amount of money involved.

” Estimates indicate that achieving these four priorities will require at least Sh5 trillion. This is undeniably a large sum. Some may see it as unrealistic, even audacious, for a country like ours.”

But beyond the massive cash outlay, the larger concern is who will benefit from these lucrative projects, taking into account the Kenya Kwanza administration’s alarming corruption record.

Some of the mega infrastructure project the President has been keen on are mired in controversy and claims of corruption.

Aviation hub

One of the deals that met headwinds is Adani airport project, which was to transform Jomo Kenyatta International Airport (JKIA) into a world-class aviation hub, but ended up becoming one of the most controversial infrastructure projects.

In early 2024, India’s Adani Group proposed a $2 billion (Sh260 billion) investment to expand JKIA through a privately initiated partnership that included construction of a second runway and a new terminal.

In return, Adani sought a 30-year lease to operate and manage the airport, a move that would have handed over control of Kenya’s busiest airport to a foreign private entity.

Concerns were raised about the lack of transparency in the procurement process, with no public tender or competitive bidding.

Critics argued that the government had bypassed established procedures, sidelining local stakeholders and experts.

The Kenya Human Rights Commission and Law Society of Kenya went to court to block the deal, citing risks to national sovereignty and public interest.

With the new Sh5 trillion plan, the fear is that contracts for road, railway, ports and airport construction could be awarded in similarly shadowy processes.

At a recent meeting with investors in Qatar, Ruto said Kenya will engage Qatar on the upgrading and renovation of JKIA.

“I had a conversation with the Emir today and we have put on the table what we are going to do with our airport, the national carrier, and all the other things,” he said on November 4.

“The kind of investment we need in our airport is possibly almost Sh200 billion. We do not have to put our money, we have money in the private sector that can do it.” 

On roads, the upgrade of the Rironi-Mau Summit road raises more questions than answers.

The road, was initially to be built by French company Vinci Highways SAS at a cost of Sh160 billion.

It was cancelled due to high service fee costs, and the project given to a Chinese contractor at a new cost of Sh200 billion.

“Next week, I will launch the dualling of the 170-kilometre Rironi–Naivasha–Nakuru–Mau Summit road. On the same day, we will break ground on the dualling of the 58-kilometre Rironi–Maai Mahiu–Naivasha road,” Ruto said on Thursday. “The gridlock that paralyses these roads every day—especially on weekends and holidays—will soon be history.”

Economist Peter Mbae faulted the decision to pay the original contractor Sh7 billion for breach of contract even as the government entered into another deal that will see the cost rising up by Sh40 billion.

“The original contract stood at Sh160 billion but the new project will cost Sh200 billion, there is no value for money and it is Kenyans who will bear the brunt,” he said.

Toll free

Dr Mbae said Kenyans travelling to Western Kenya might have limited options but to pay and use the road, as the government has not offered toll free alternatives for those who don’t want to use the new road.

“Tolling roads across the globe is optional and people are given alternative routes, that’s what happens with Nairobi Expressway, but forcing Kenyans to pay to travel limits their right to free movement and therefore illegal.”

He said tolling the Rironi-Mau Summit road exposed Kenyans to multiple taxation which would include the ordinary taxes, fuel levy and the toll fee a move he said was not acceptable to Kenyans.

The government is currently negotiating with the consortium of China Road and Bridge Corporation and Kenya’s National Social Security Fund on the delivery of the project. 

Presidential economic advisor, David Ndiii, has insisted that there is no way out of public-private partnerships (PPPs) in infrastructure development and Kenyans have put up with paying for certain services if the country is to build the infrastructure that it needs.

“There are about 2,000 kilometres of highways that we think we can fund off budget through PPPs and tolling,” he said.

“There will be a lot of noise but we will toll them. Otherwise they will not be built. Then money on budget can only build rural access roads.

‘‘If you use all the money on budget for highways that can be paid for, then you will not build the rural roads for agriculture.”

But even as Ndii spoke, a letter seen by The Standard confirmed that the Public–Private Partnership Petitions Committee has not been sitting because it lacks the legally required quorum.

With more than 30 petitions stalled — including the Sh300 billion Grand Falls Dam case — questions are emerging over whether this paralysis is an accident or by design. 

The committee that acts as Kenya’s final referee in public–private investment disputes has quietly ground to a halt as it is not properly constituted, leaving only two of the seven members required under the law.

The result: more than 30 petitions worth tens of billions of shillings are gathering dust, and the National Treasury now effectively sits as judge and jury over projects it already controls. A senior source within the PPP unit admitted the committee “hasn’t convened for months” because there is no quorum.

The Treasury

“You can’t legally hear cases when there are two members instead of seven,” the source said. “It means every project dispute now ends up back at the Treasury.”

Last week, the Cabinet approved the establishment of an infrastructure fund to ensure the country has a kitty dedicated to funding mega projects. 

Ruto is expecting Parliament to consider expediting the Sh1.5 trillion National Infrastructure Fund next month.

Kiharu MP Ndindi Nyoro has also expressed concerns about the overlay commercial approach to tolling and said while the upgrade of Rironi-Mau Summit road was urgent, Kenya should take care of how it goes about the process, warning that it could increase the cost of doing business. 

“Kenyans in the western part of the country deserve this road to be dualled but it will not serve our economy when this road is packaged as a business model,” he said.

The Chinese consortium will recover their Sh 200 billion over a three decade operations and maintenance phase. 

Peter Murima, chairman Motorists Association of Kenya questioned the move to hand over the key Rironi-Mau Summit transport corridor to private players who will then control who uses the road.

People’s freedom

“As per the Constitution, there is no way public land can be privately run or controlled or owned. The Constitution is also clear that you cannot impede people’s freedom of movement,” he told The Standard.

Ruto’s promise to build 1,000 dams across Kenya if elected was a sweet song to the ears of many families and farmers who need dams for water usage. Nearly three years into his presidency, not a single mega dam has been completed

The most affected is the Grand Falls Dam project, a Sh300 billion venture whose cancellation by the Treasury in August has already sparked controversy.

GBM, the British firm behind the project, had filed a petition before the PPP Committee to challenge the cancellation. The hearing was scheduled for this week, but it will not take place.