In a significant move, the Kenyan government has terminated a high-profile project aimed at bolstering security at its entry points through an advanced electronic visitor tracking system. This decision comes amidst a backdrop of international scrutiny and domestic concerns regarding the project’s transparency and the integrity of its primary contractor, the Adani Group.

Project Overview

The initiative, known as the Next-Generation Integrated Border Management System, was conceived to revolutionize how Kenya monitors and manages the influx of visitors across its borders. The system was designed to integrate various facets of border security, including immigration, customs, border patrol, and intelligence units. Key features of the proposed system included:

• Self-Service Passport Control Machines: Utilizing facial recognition technology, these machines were intended to verify travelers’ identities, thereby expediting the clearance process and reducing waiting times at entry points such as Jomo Kenyatta International Airport (JKIA).
• Real-Time Information Sharing: The system aimed to facilitate instantaneous data exchange among security agencies, enhancing the detection and prevention of illicit activities such as smuggling and unauthorized entry.
• Comprehensive Visitor Tracking: Beyond initial entry, the platform was to monitor visitors’ movements within the country, including accommodations and travel itineraries, thereby bolstering internal security measures.

Cancellation Details

Documents from the Public-Private Partnership (PPP) Unit at the National Treasury reveal that the project was discreetly canceled in October 2024. The PPP model had envisioned a private investor, specifically the Adani Group, financing the infrastructure with the expectation of recouping investments through user fees or government payments over time.

The PPP Unit’s report succinctly states, “The project was canceled in October 2024,” without delving into specific reasons for this decision. However, the context surrounding the cancellation provides insight into the government’s rationale.

Adani Group’s Legal Challenges

The termination aligns with escalating legal troubles faced by the Adani Group. In November 2024, U.S. authorities indicted Gautam Adani, the founder of the conglomerate, along with seven other executives, on charges of orchestrating a massive bribery scheme. The indictment alleges that between 2020 and 2024, the defendants paid approximately $265 million in bribes to Indian government officials to secure lucrative solar energy contracts. These contracts were projected to yield over $2 billion in profits over two decades.

The charges encompass conspiracy to violate the Foreign Corrupt Practices Act, securities fraud, mail and wire fraud, and conspiracy to obstruct justice. The indictment further accuses the defendants of misleading U.S. investors by concealing the bribery scheme while raising over $3 billion through loans and bond offerings.

In response to these allegations, the Adani Group has vehemently denied any wrongdoing. In an official statement, the company asserted, “As stated by the U.S. Department of Justice itself, ‘the charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.’ All possible legal recourse will be sought.”

Kenya’s Response and Broader Implications

The indictment of Gautam Adani and his associates has had immediate repercussions for the conglomerate’s international ventures. In Kenya, the government faced mounting pressure from civil society groups and international bodies to reassess its engagements with the Adani Group. Critics highlighted concerns over the lack of transparency in the procurement process and questioned the value for money in the proposed projects.

In his State of the Nation address, President William Ruto announced the cancellation of the procurement process that was expected to award control of JKIA to the Adani Group. He emphasized the government’s commitment to upholding integrity and transparency in all its dealings, stating, “We cannot compromise on the principles of good governance and accountability. Our partnerships must reflect these values.”

The cancellation of the border management system is part of a broader move by the Kenyan government to distance itself from the Adani Group. In November 2024, Kenya also terminated a $736 million transmission line project with Adani Energy Solutions. The company, however, downplayed the impact of this decision, stating that it did not require regulatory disclosure under Indian stock exchange rules as it was within the ordinary course of business.

Regional Security Context

Kenya’s decision to enhance its border security infrastructure was driven by legitimate concerns over the porous nature of its borders, especially with neighboring countries experiencing political instability and conflict. The unregulated movement of people and goods has posed significant security challenges, including the threat of terrorism, smuggling of contraband, and human trafficking.

The proposed system was expected to mitigate these risks by providing a more robust framework for monitoring and controlling entry and exit points. Immigration Principal Secretary Julius Bitok had previously championed the system, highlighting its potential to offer enhanced monitoring of visitors. He noted, “The new system will be able to track anybody who comes into the country, know which hotel they are going to stay in, and is able to monitor their security.”

Transition to Electronic Travel Authorization (eTA)

Prior to the proposed border management system, Kenya had already taken steps to modernize its immigration processes. In January 2024, the government introduced the Electronic Travel Authorization (eTA) system, replacing traditional visas. The eTA requires visitors to apply for entry 72 hours before their arrival and pay a fee of $30 (approximately Sh3,800). Notably, nationals from East African countries are exempt from this requirement.

In a bid to promote intra-African travel and trade, the government recently removed the eTA requirement for all African countries, with the exceptions of Somalia and Libya, citing ongoing security concerns in those nations.

Future Prospects

The cancellation of the Adani-led border security project underscores the complex interplay between national security imperatives and the necessity for transparent, ethical partnerships. While the project’s termination addresses immediate concerns regarding the contractor’s integrity, it also leaves a gap in Kenya’s border security strategy.

Moving forward, the government faces the challenge of identifying alternative solutions to enhance border security. This may involve seeking new partners who meet stringent ethical standards or investing in homegrown technological solutions. The overarching goal remains to safeguard the nation’s borders while adhering to principles of good governance and accountability.

In conclusion, Kenya’s decision to cancel the multi-billion-shilling Adani border security project reflects a commitment to integrity and transparency. However, it also highlights the ongoing challenges the country faces in securing its borders amidst regional instability and evolving security threats. The path ahead will require careful navigation to balance these critical concerns.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

31^st January, 2025