The Adani Group is negotiating a Ksh116 billion deal to construct high-voltage power lines in Tanzania, just days after sparking controversy in Kenya over a proposed airport management deal. Tanzania’s Public-Private Partnership Centre confirmed on Thursday that it had received an expression of interest from the Adani Group to modernize the country’s power infrastructure.

Key Highlights:

• Adani Group proposes a Ksh116 billion investment in Tanzania to build high-voltage power lines.
• The group recently faced backlash in Kenya over a secretive airport management deal.
• Adani Group is also negotiating a Ksh94.9 billion electricity transmission concession in Kenya.

Davis Kafulila, Executive Director of Tanzania’s Public Private Partnership Centre, told Bloomberg that the Indian conglomerate submitted a proposal worth $900 million (Ksh116.14 billion) to improve Tanzania’s electrical grid. This follows a 30-year concession granted to Adani in May to operate the main container terminal at the port of Dar es Salaam.

Adani’s growing investments in East Africa have raised eyebrows, particularly after the group’s controversial dealings in Kenya. The investment model used by Adani, which sparked uproar in Kenya, now faces scrutiny in Tanzania as well.

Adani Faces Public Backlash in Kenya

Adani Group’s proposed investment in Tanzania comes in the wake of controversy surrounding a secretive deal with the Kenyan government to take over the management of Jomo Kenyatta International Airport (JKIA), the busiest airport in Kenya. On September 24, Members of Parliament directed the Kenya Airports Authority (KAA) to stop further engagements with Adani over the lack of transparency surrounding the deal.

David Pkosing, Chairperson of the Parliament Committee on Transport, issued a stern warning to the KAA: “It is the advice of this committee that because we are going to order a special audit, you don’t do anything with Adani until this committee presents a report to parliament. If you do it, it’s up to you,” he stated.

The committee’s intervention came after reports emerged of secret meetings between Adani Group representatives and top government officials, leading to growing public concern over the nature of the deal. A special audit has been launched to investigate the terms of the agreement.

Adani Expands into Kenya’s Power Sector

Adani’s push into East Africa does not end with airports. The group is currently in talks with the Kenyan government to construct high-voltage power lines in a deal valued at Ksh94.9 billion. This proposed concession would involve the group building electricity transmission infrastructure to meet the country’s growing energy demands.

Ongoing Investigations and Allegations

Amid these negotiations, Adani Group is also facing allegations of money laundering in Switzerland, accusations the company has strongly denied. The allegations are part of a broader scrutiny into the group’s financial dealings and investment practices. As Adani seeks to expand its operations in East Africa, these controversies have raised questions about its business model and transparency.

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Despite the challenges, Adani continues to pursue strategic investments across the region, eyeing critical infrastructure projects in both Tanzania and Kenya. As the group navigates political and legal hurdles, the outcome of these negotiations could significantly impact its regional influence.