Kenyan Court Suspends Adani Energy's $736 Mn Deal

Kenyan high court has suspended a $736 million (approximately ₹6,189 crore) deal between the state-owned Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions. The agreement, signed earlier this month, aimed to build and operate high-voltage power transmission lines over a 30-year period.

The Law Society of Kenya challenged the deal, arguing that it was a "constitutional sham" and lacked transparency. They also claimed that there was insufficient public participation in the project, which is required under Kenya's Public-Private Partnerships Act of 2021.

This suspension could have significant implications for Kenya's energy infrastructure and foreign investment climate. The court's decision adds uncertainty to the partnership, which was intended to address power outages and support economic growth in the country.

As of now, Gautam Adani or the Adani Group has not publicly commented on the Kenyan court's suspension of the $736 million deal. The situation is still developing, and it's likely that the Adani Group will issue a statement or response in the near future.

Apart from this deal, the Adani Group's proposal to operate Kenya's main airport, Jomo Kenyatta International Airport (JKIA), for 30 years was also challenged and eventually suspended in court, last month. The Law Society of Kenya and the Kenya Human Rights Commission argued that the deal was unaffordable, threatened job losses, and lacked transparency. The court blocked the proposal, citing concerns about good governance and accountability.

The Law Society of Kenya has raised issues about the lack of meaningful public participation in the agreements with Adani Group, which is required under Kenya's Public-Private Partnerships Act of 2021.

These disputes highlight the challenges and scrutiny faced by the Adani Group in its efforts to expand its infrastructure projects in Kenya.

Kenyan Court Suspends Adani's Plan to Invest in Biggest Airport

A Kenyan court has temporarily halted Adani Group's proposal to invest in and manage Nairobi's Jomo Kenyatta International Airport for 30 years. The court's decision came after legal challenges argued that the deal was unconstitutional and posed significant fiscal risks.

The $1.85 billion investment plan included upgrading the airport and constructing a new runway and passenger terminal.

The decision to allow Adani Group to invest in and manage Nairobi's Jomo Kenyatta International Airport was challenged by the Law Society of Kenya and the Kenya Human Rights Commission. They argued that the deal was unconstitutional, posed significant fiscal risks, and did not offer value for money to the taxpayer.

The Law Society of Kenya and the Kenya Human Rights Commission argued that the deal was made without adequate public consultation, which is a requirement under the Kenyan Constitution.

Concerns were raised about the transparency of the negotiation process and whether it adhered to principles of accountability. The organizations questioned whether the deal posed significant fiscal risks to the country, potentially burdening taxpayers without clear benefits.
The temporary halt of Adani Group’s proposal to invest in Nairobi’s Jomo Kenyatta International Airport could have several implications for Kenya’s infrastructure development. The planned upgrades, including a new runway and passenger terminal, will be postponed, potentially affecting the airport’s capacity and efficiency.

This decision might create uncertainty for future foreign investments in Kenya’s infrastructure projects, as investors may become cautious. The delay could impact economic growth, as improved airport infrastructure is crucial for boosting tourism and trade.

The Kenyan government may need to reassess its strategy for attracting and managing large-scale infrastructure investments.

Adani Sets Up Two New Subsidiaries in Kenya and China

Adani Enterprises has established two new subsidiaries, one each in Kenya and China. The Kenya subsidiary named Airports Infrastructure PLC (AIP) aims to take over, operate, maintain, develop, design, construct, upgrade, modernize, and manage airports in Kenya.

The company is currently in talks to invest in the Nairobi airport, which would mark Adani's first international venture in the airport business.

The other new wholly- owned subsidiary Adani Group has incorporated named Adani Energy Resources (Shanghai) Co., Ltd is domiciled in Shanghai, China, said the company in an exchange filing. It is formed to carry out supply chain business and project management services.

Adani Global will 100% share capital in newly incorporated Adani Energy Resources (Shanghai) Co., Ltd.

This move is part of Adani's broader strategy to expand its operations globally. 

To recall, in early of last month Adani Airport Holdings Ltd. incorporated a wholly owned subsidiary named Global Airports Operator LLC in Abu Dhabi to handle investment, acquisition, construction, operation, and maintenance of airports outside India.

Nairobi’s Jomo Kenyatta International Airport is a major hub in East Africa. Managing this airport could provide Adani with a strategic advantage in the region, enhancing connectivity and trade routes.

It was in July this year when it was reported that Adani Airport Holdings Ltd. has submitted a proposal to Kenya's government for investing in its main airfield, the Jomo Kenyatta International Airport (JKIA) in Nairobi,

As per media reports, Adani Group is currently in talks to invest in the Nairobi airport. The group currently operates seven airports in India and is set to commission a new airport in Navi Mumbai. If successful, Kenya will be the Adani group's first international foray in the airport business.

By leveraging their experience in managing airports in India, Adani can bring operational efficiencies and innovations to the Kenyan market, potentially setting new standards in airport management.

Adani Submits Proposal to Kenya Govt for the Country's Biggest Airport

Gautam Adani's portfolio firm Adani Airport Holdings Ltd. has submitted a proposal to Kenya's government for investing in its main airfield, the Jomo Kenyatta International Airport (JKIA) in Nairobi, reported Bloomberg.

The proposal, as per the statement by KAA acting Managing Director Henry Ogoye, includes plans to build a new passenger terminal, a second runway, and refurbish existing facilities. The investment required is substantial, estimated at $1.85 billion, with the first five years of the proposed upgrade project requiring around $830 million.

However, the proposal is yet to undergo technical, financial, and legal reviews to comply with the nation's public-private partnerships laws. Neighboring Ethiopia, which operates Africa's largest airplane fleet, has also been expanding its aviation infrastructure in recent years, challenging Kenya's regional aviation hub status.

To recall, in early of last month, Adani Group (represented by Adani Ports and Special Economic Zone Ltd. joint venture) already entered Africa by acquiring a 95% stake in a container terminal company at the Port of Dar es Salaam in Tanzania. According to an exchange filing, Adani collaborated with Abu Dhabi-based logistics firm AD Ports Group and East Harbour Terminals Ltd. to acquire Tanzania International Container Terminal Services Ltd. for $39.5 million

Jomo Kenyatta International Airport (JKIA) in Nairobi faces several challenges that highlight the urgent need for infrastructural IMPROVEMENTS. The facilities at JKIA date back several decades, and many components require modernization to meet current standards. Over the past ten years, JKIA has suffered from insufficient facility and infrastructure capacity upgrades. Even temporary interventions have become permanent solutions, contributing to the current state of affairs and service disruptions.

Recently, videos emerged showing leaking roofs at JKIA, emphasizing the need for urgent repairs and maintenance. In April 2023, JKIA experienced an engine failure during takeoff of a Singapore Airlines Cargo plane, leading to an eight-hour shutdown. A second runway could have prevented such disruptions.

Notably, a previously planned Greenfield terminal project faced contract and litigation issues, resulting in delays.

Despite these challenges, there is optimism. Adani Airport Holdings Limited (AAHL) has proposed a significant investment to modernize JKIA, addressing infrastructure deficiencies and paving the way for growth and enhanced competitiveness in the region.

JKIA is located in Embakasi, a suburb of Nairobi, is Kenya's largest and busiest airport. It serves as the main gateway to the country, connecting Kenya to various international destinations.

In 2023, the number of passengers at JKIA surged to 8.2 million, accounting for 67.3% of all passengers in Kenya. JKIA's significance as an aviation center sets the pace for other airports in the region, and it continues to play a vital role in East and Central Africa's air travel landscape.

Adani Airport Holdings Limited (AAHL) took flight in 2019 with a vision to transform airport experiences. As a subsidiary of Adani Enterprises Ltd, AAHL manages seven top-tier airports in India: Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.

AAHL's reach extends further with the Navi Mumbai International Airport (NMIAL), ushering in a new era for India's aviation sector¹². AAHL's commitment lies in curating exceptional journeys, from personalized services to innovative facilities, making airports gateways of wonder. They prioritize route development, retail experiences, digital transformation, elevated service quality, and sustainability initiatives.

Artha India Ventures announces its 3rd investment in the African continent; backs Kenya-based mobility marketplace startups BuuPass

• BuuPass raises $1.30 million in a Pre-seed round
• Round has been led by Founders Factory Africa and participated by Google Black Founders Fund and Artha India Ventures
• BuuPass has previously received a $1 million grant from Hult Prize, backed by Bill Clinton
• Funds raised will get used for increasing market share in East Africa

Kenya-based B2B2C mobility marketplace BuuPass has raised $1.30 million in a pre-seed round led by Founders Factory Africa. The round also saw participation from Google Black Founders Fund, Gullit VC, Five35 VC, Artha India Ventures, FrontEnd Ventures, Adaverse, Renew Capital, Changecom, XA Network, Ajim Capital, and Daba Finance. Funds raised will get used for expanding into East African markets with a special focus on Kenya and Uganda since the Company aims to increase its market share in these markets. This is the first institutional round raised by BuuPass, which previously received $1 million in grants from Bill Clinton-backed Hult Prize.

Sonia Kabra, Co-founder, and Co-CEO, BuuPass, says, “Coming from a small town in India, traveling to larger cities meant long queues and endless wait times for buses or trains. Witnessing the impact of online travel-booking platforms like redBus and IRCTC, I co-founded BuuPass to build the digital infrastructure for transport in Africa. With the support of our investors, we’re thrilled to scale our product and expand our reach, making transportation more seamless and accessible. This funding will enable us to expand our footprint in Kenya and Uganda. Our goal is to create a comprehensive continent-wide network of interconnected transport that make traveling hassle-free for all.”

Founded in 2016, BuuPass follows a B2B2C approach and provides fleet owners with a full-stack bus management system (‘BMS’) for managing their operations, inventory, and sales. The BMS also includes a point-of-sale solution to capture bookings and provides access to a parcel management module. BuuPass helps customers search, compare and book their tickets across different channels through their marketplace, like websites, apps, and USSD codes.

Anirudh A Damani, Director of Artha India Ventures, says, “The African continent is fast emerging as a startup innovation hotbed. The African ecosystem is churning out many unique investment opportunities that will disrupt the market across sectors. Artha India Ventures is taking an early bet to back potential category winners with immense promise. In that vein, BuuPass has taken the lead in building digital rails for Africa’s intercity transport infrastructure. Based on Artha’s success in navigating this digitization play in India, we are confident that BuuPass will grow rapidly into a market leader.”

BuuPass has over 1,200 vehicles registered on its platform from over 25 bus companies. Through its partnership with Safaricom (or M-Pesa), the Company is the sole technology provider for online railway ticket booking in Kenya and generated a GMV of $30 million in CY 2022. It currently processes ~12,000 transactions daily.

Wyclife Omondi, Co-Founder & Co-CEO, BuuPass, says, “Over 9 million travelers have saved time and money by buying their tickets from the comfort of their homes. Additionally, our bus operators have seen a significant decrease in cash leakages and increased revenue from online bookings. 80% of our clients come through referrals, demonstrating that our focus on customer satisfaction is yielding fruit. We can customize the technology for most businesses, give on-demand support, and provide USSD functionality.”

Mr. Akshay Grover, Group CEO of Cellulant and potential payments partner for BuuPass said, “At Cellulant, I have seen the importance of building digital infrastructure to empower and grow businesses. Therefore, the opportunity to invest in a company like BuuPass, which is digitizing the $40 billion intercity transport industry, was super exciting. Both Sonia and Wyclife are outstanding founders with an excellent track record of execution, and together, we can build strong partnerships within the African ecosystem. Further, I am delighted to partner with Artha in our second investment in Africa.”

BuuPass is Kenya’s largest online bus, train, and flight ticketing platform that has transformed bus travel in the country by bringing ease and convenience to millions of Kenyan travelers. They work with the country’s leading bus, train, and flight operators to bring you the convenience of digital bookings.

Artha India Ventures (‘AIV’) is a distinguished family office founded in 2012, with a diverse investment portfolio encompassing renewables, leasing, and institutional funds. AIV manages over ₹800+ crores in third-party capital and has invested in 80+ high-performing startups across India, the USA, Israel, and Africa, including renowned companies such as OYO, Purplle, LeverageEdu, Tala, IconBuild, Rapido, Coutloot, Chai Break, Karza Technologies, Stay Vista, Mobilewalla, and Exotel. In addition, the AIV currently operates a 10+ MW renewable energy portfolio and leases more than 100 cars, demonstrating its dedication to sustainable growth and business development.

The AIV-promoted Artha Select Fund (‘ASF’) has recently gained recognition as a leading fund in Bain & Company’s / IVCA’s 2023 Report on the Indian Venture Capital ecosystem.

Artha India Ventures Expands Its Presence to Africa; Invests in Kenya-based Re-Commerce Startup Badili

• Eyes investing in 8-10 African startups by 2023
• This is Artha India Ventures (AIV)'s 11th international investment that covers Israel, the USA and now Africa
• Rajesh Sawhney, Ritesh Malik, SOSV, Uncovered Fund and Grenfell Holdings also participated in the round

Artha India Ventures (AIV), the well-established family office of Ashok Kumar Damani, today announced a pre-seed investment in Badili, Africa's first online buy-back platform for smartphones, based in Kenya. This marks AIV's 1st investment in Africa and brings its international investments to 11 across Israel, the USA and now Africa, and the overall total (national and international) investments to 75.

AIV aims to spread its investment portfolio across 7-8 countries across the African continent and will invest in 25 more startups by 2024, with a cumulative fund allocation of over $20 million in Africa through direct, GP, LP and syndicated investments. AIV will invest in seed to series A rounds across fintech & lending, media infrastructure and consumer-tech sectors, depending on the proposition at hand.

Badili has raised the first tranche of $850,000 from the total target of a $3.35 million pre-seed round. Notable angels and institutional investors such as Rajesh Sawhney, Ritesh Malik, SOSV, Uncovered Fund and Grenfell Holdings participated in the tranche. 

Badili will utilise the funds for acquiring inventory, tech enhancement, and establishing its offline presence through brick-and-mortar stores across 7 cities in the East African country, Kenya. The consumer to business (C2B) startup is the first in Africa that purchases and sells used smartphones directly from/to the consumers and is supported by strategic partnerships in China, South Korea and India.

As a 1st of its kind, Badili has a serviceable market of 130 million+ second-hand smartphone users in Africa. In the absence of established e-commerce players like Amazon in Africa, Badili has introduced standardisation processes in an otherwise unorganised segment - usually dominated by local players. Coupled with a 119% mobile penetration in 2020 implying a ~10% YoY growth, the startup is eyeing a user base of 60 million by 2023 and is set to expand its services across 7 African countries, including Nigeria, which is the biggest smartphone market in the region.

Anirudh Damani, Managing Partner, Artha Venture Fund

Anirudh A Damani, Director, Artha India Ventures, said, "We are thrilled with our first investment in Africa as it is among the frontrunners of emerging markets after India. We have received a tremendous response from the African startup ecosystem and look forward to investing in 4 to 5 Africa-focused startups every year. Moreover, we are not limited to seed rounds and have expanded our investment strategy to include pre-series A and series A rounds for this important continent.

Badili had to be our maiden investment in the country as we resonate with Rishabh's pragmatic vision and frugal innovation. He is a seasoned entrepreneur with a solid track record from his previous startups. As the 1st player to purchase, refurbish and sell smartphones in Kenya, Badili has a clear first-mover advantage in the region. We are elated to have them on board."

Rishabh Lawania, Founder & CEO, Badili, commented, "With over 20% of smartphone users in Kenya opting for second-hand smartphone devices, we have identified a clear demand in the segment. So much so that we have partnered with various suppliers across countries, leading with India, that can enable us to meet the initial demand.

We have also established Badili as the leading choice for OEM players, and brands like Samsung and Apple have made us their official buy-back partners in Africa.

We wanted to partner with an investor that shared our vision, understood the re-commerce market, and who would help us grow. With AIV's investment legacy across continents, they were bound to be our preferred choice."

On the ecological front, as India is one of the highest e-waste generating nations in the world, of which 12% can be attributed to smartphones, the Badili team are doing their bit to offset the concerns. Hence, with India's strategic supply chain alliance, Badili aims to limit the adverse impact of used phones currently making their way to landfills. Riding strong on the first-mover advantage and on account of such alliances, Badili aims to transact 100 million phones annually by 2026.

About Badili

Based in Kenya, Badili is a re-commerce startup for old mobile phones. It operates through its website, mobile app, and a network of over 210 dealers. The company buys phones from a user, refurbishes, and sells them to the consumers looking for a cheaper alternative to a new phone with equivalent features. The company also plans to provide repair services and expand rapidly throughout Africa by expanding its dealer network and launching its own brick and mortar stores. Badili has a strategic supply chain alliance with India and its growth will only power the circular economy and lead to sustainable growth.

About Artha India Ventures

Artha India Ventures (AIV) is the alternative investment arm of Ashok Kumar Damani's family office. Founded in 2012, with 3.1x DPI, 7.3x MOIC and 21 exits, AIV currently has an impressive portfolio of over 75 companies spread across India, the USA, Israel and Africa. Helmed by Ashok Kumar Damani, a serial entrepreneur and a seasoned stockbroker, AIV generates liquidity through its operating assets, such as high-yielding renewable energy projects and GP investments in institutional funds. The generated cash is then invested in startup opportunities across the globe.

AIV has a sector-agnostic investment outlook and has a stake in segments such as edtech, content platforms, e-commerce, auto and healthtech amongst others. OYO Rooms, Tala, Baby Chakra, Rapido and Coutloot are some of the many names that have been part of AIV's portfolio. The whopping 150x and 165x returns from OYO Rooms and Exotel, respectively, and the potential 102x from Purplle, are testament to the team's ability to pick business winners. AIV is maintaining its growth trajectory and is set to make 100 investments by 2023.

Kenya Reopens Borders for its Borders to Indian Travelers

Kenya safari for Indian travellers | what you need to know when embarking on a Kenya safari post-Covid-19 | travel requirements as you travel to Kenya today

Indian travel enthusiasts who have been craving to go on a Kenyan safari now have reason to celebrate!

Kenya has just reopened its borders and is receiving inbound travellers from India. The East African nation is the most renowned destination as far as wildlife safaris are concerned.

However, it had temporarily closed its borders following a second wave of the Covid-19 pandemic.

Having the situation under control, the country has resumed delivering its trademark world-class safari experiences.

At the moment, the tourism calendar is rife with exciting opportunities and attractions.

One of the most magical experiences you can hope to be part of is the annual wildebeest migration, which is still ongoing in the Maasai Mara.

But first, it shall be necessary for every visitor to observe a few basic protocols before allowing their free movement in the country.

The following are the travel requirements you will have to meet;

Passports

As with every instance where cross border travel is involved, the inbound visitor shall be required to produce their official travel document- the passport.

Visas

The other requirement you will need to meet is a Kenya entry visa. As of 1st January 2021, the Kenyan government made it mandatory that all visa applications are created and issued online.

That makes the process much easier for the traveller who no longer has to make numerous visits to embassy offices or go through a lengthy bureaucratic procedure.

Now, you can visit the e-visas website and apply for your entry visa.

Please note that all the visa requirements must be met before you depart from India. In other words, you must apply and be issued with a visa before you can schedule your travel.

Visitors are advised to apply for single entry or transit visas depending on the nature of their travel.

Curfew

Although the country is adequately managing the pandemic and keeping the number of infections low, a nationwide evening curfew continues to be in force.

Consequently, people are required to be indoors between 10 pm- 4 am. That, unfortunately, means no clubbing or nightlife on your safari for now.

On the brighter side, with the host of attractions and exciting daytime activities available, you may probably find yourself too exhausted for a night out anyway.

Health screening

All inbound travellers to Kenya must also undergo mandatory screening for Covid-19 in their countries of origin. The test has to have been taken within the last 96 hours before travel.

You will be required to furnish a Covid-19 travellers health surveillance form online as proof of this.

To provide this information, duly tested travellers are advised to download the Jitenge Moh app on Google Play Store to access the online form.

This requirement applies to visitors to Kenya as well as those transiting through the country.

Upon submitting the relevant information on the app, you will be issued a QR code that you will avail to the health officials at the airport upon arrival.

Please note that only visitors whose codes check out shall be allowed to proceed to immigration.

So, what happens to those without the Covid-19 clearance? Failure to furnish proof of the negative Covid-19 test as outlined above may result in one of two things.

The visitor will either be returned by their airline to their country of origin or; may be committed to mandatory quarantine at a government facility at their own cost.

Other protocols

Once done with immigration, you will be allowed to visit any part of the country subject to your observance of these other protocols;

• Wear a face mask when in public places at all times. That includes streets, hotels, and public transport.
• Observe a social distance of at least one meter.
• Avoid public gatherings and meetings.