President William Ruto said the Adani deal was cancelled because of legal restrictions that prevent the government from dealing with investors who face certain legal challenges.
President William Ruto has reiterated the government's commitment to upgrading the Jomo Kenyatta International Airport (JKIA) despite the recent termination of the multi-million shilling deal with the Adani Group.
This comes a few weeks after the President ordered the Ministry of Transport to cancel the proposed deal, citing legal constraints.
Speaking in Taita Taveta County during the groundbreaking ceremony for the Sh11 billion Devki iron ore pelletisation plant in Manga on Tuesday, President Ruto assured Kenyans that the much-needed upgrade of the airport would proceed under a new framework.
"I want to assure Kenyans that a new airport will be constructed. Some people celebrated when the deal was cancelled, yet the airport roof is leaking and in a bad state. Other countries are building their airports, but we are opposing and celebrating. Surprisingly, the critics don't have an alternative plan or proposal for this issue," he said.
The president said the deal was cancelled because of legal restrictions that prevent the government from dealing with investors who face certain legal challenges.
He expressed confidence in finding new investors to implement the project.
"We may have stopped the Adani deal, but that does not mean we will not upgrade the airport. I was confident he was going to build our airport and do a good job," he added.
During the ceremony, President Ruto highlighted the government's efforts to create a conducive environment for investors to spur economic growth.
He reiterated that the Vision 2030 economic pillar, which aims for a 10 percent annual economic growth rate as a minimum threshold for fulfilling the country's development agenda with the manufacturing sector, identified as a key contributor, is expected to play a significant role in this growth.
The President noted that the manufacturing industry is the second-largest employer in the country, providing direct employment to 360,000 Kenyans and indirectly supporting thousands of livelihoods.
"We want to increase the manufacturing contribution to 15 percent by 2027 and 20 percent by 2030. We will ensure that we provide an enabling business environment by offering incentives and institutional support for investors to realise the immense potential that exists in our economy," he stated.
He also announced plans to create and expand special economic zones, export processing zones, and industrial parks to boost industrial growth.
The Manga iron ore factory, he said, would help reduce imports of iron and steel products, which amounted to Sh120 billion in 2023, while exports were valued at Sh32 billion.
"The investment we are launching today is a significant step to address this imbalance by boosting local production and enhancing value addition, therefore achieving greater self-sufficiency," he said.
President Ruto urged Kenyans to be patriotic and support national development initiatives and attacked his critics for opposing all government plans thereby pulling the country backwards.
"I urge my fellow Kenyans, we must be patriotic. We don't have a spare country other than Kenya. Sometimes when we have patriots, such people are sabotaged and profiled, and the people who don't believe in this country are glorified," he said.
On his part, the Executive Chairman of the Devki Group of Companies, Narendra Raval, said the Manga Steel factory would create over 3,000 job opportunities and would be the first factory to produce magnetite iron ore to make it usable iron ore in the country.
"By 2030, I want to employ over 30,000 employees directly in my companies. In this factory, I have directed the contractor to ensure 80 percent of the job opportunities are locals," he said.
Governor Andrew Mwadime, lauded the investment, noting that Taita Taveta County is endowed with vast quantities of iron ore and other minerals.
He said that the new plant would spur economic growth in the region and create numerous job opportunities for the local population.
He said the county is endowed with vast quartz, copper and graphite minerals which could attract investors.
"I urge the national government to bring us the investors, we are ready to give the land for the factories. It will help both the county and national government to get revenue," he said.
