David Ndii clarifies reports government overspent on Adani, KETRACO deal
Ruto's Economic Advisor David Ndii dismisses claims the government overspent on KETRACO deal with Adani
Ruto’s Economic Advisor David Ndii dismisses claims the government overspent on KETRACO deal with Adani.
The Chairperson of the Presidential Council of Economic Advisors, David Ndii, on Saturday, addressed the controversy in the Kenya Electricity Transmission Company (KETRACO) deal with Adani Energy Solutions.
In a brief statement, while responding to a social media post, Ndii dismissed allegations that the government overspent in the electricity deal recently signed by Energy and Petroleum Cabinet Secretary Opiyo Wandayi with the Indian conglomerate.
The government advisor stated that the Public-Private Partnership (PPP) agreement for the development of transmission lines and substations in the country stood at Ksh95 billion, an amount which he claimed included interests payable by the government during the contract period.
Ndii was compelled to clarify the matter after a Kenyan questioned the government’s controversial decision to spend such an exorbitant amount of money on the construction of a 390 km transmission line despite using only Ksh20 billion for a similar project in 2017.
“In 2017, just 6 years ago KETRACO constructed a 482km line at just Ksh20 billion. Why are we building a 390km line at Ksh95 billion, almost 5 times the cost? The project should be around Ksh50 billion with kickbacks factored in,” argued the online user.
David Ndii while responding to the allegation noted that the Ksh20 billion spent in 2017 for the connection of the 482km power line was paid as a headstart for the project. According to Ndii, the money excluded wayleave and other essential expenditures payable by the government at the end of the project.
The government advisor further added that the value of the Kenyan Shilling against the dollar in 2017 also played a significant role in lowering the budget cost for the construction of electricity lines during the said period.
Safaricom announces M-pesa service disruption and other services
ODM MP issues clarification over alleged plot to oust Speaker Wetang’ula
Mutilated body of a female found dumped outside Naivasha Road Apartments in Nairobi
Government eliminates business class travel for junior state officials
Uhuru Kenyatta calls for sustainability in African-led peace missions
According to Ndii, in 2017, the Kenyan shilling stood at Ksh100 against the United States currency, compared to 2024 when the local unit’s value marginally depreciated against the green buck to retail at Ksh128.
“Ksh20 billion is EPC ie contract price only. It does not include wayleave, finance costs, etc, borne by the government. PPP is the total cost. Let’s do the math. The dollar was Ksh100. USD200 million is Ksh26 billion today. PPP is a total cost,” Ndii stated.
On October 11, the government signed a deal with Adani Energy Solutions for the construction, operation, and maintenance of electricity transmission lines for a period of thirty years.
Speaking during the signing of the agreement, Energy CS Wandayi stated that the project was designed to enhance Kenya’s power infrastructure to ensure reliable and widespread access to electricity adding that the move would aid in reducing the recent persistent outages.
“By enhancing electricity transmission capacity, the government aims to support industrial growth and improve regional integration, ensuring stable and reliable power for industries and households across the country,” Wandayi said.
Also read,
Junet Mohammed responds over reports to replace Kindiki as Interior CS
IMF issues update on planned audit of Ruto government
Autopsy reveals how Eastleigh mother and two daughters were killed
Ruto throws jab at impeached DP Gachagua
Government responds to claims of intimidating churches
Mike Sonko responds to claim of holding titles deeds for affordable housing
Follow us
