Kenya Cancels Adani Group Deals Following U.S. I...

Kenya Cancels Adani Group Deals Following U.S. Indictment of Founder

Zim Now Writer

Kenyan President William Ruto announced the cancellation of two major agreements involving India’s Adani Group, following allegations of bribery and corruption against its founder, Gautam Adani, in the United States.

The first deal, valued at nearly US$2 billion, involved the construction of a second runway and upgrades to the Jomo Kenyatta International Airport in exchange for a 30-year lease. A second public-private partnership, worth US$736 million, tasked the Adani Group with building power transmission lines under Kenya’s energy ministry.

Speaking during his State of the Nation address, Ruto attributed the decision to "new information provided by investigative agencies and partner nations." His announcement was met with loud applause from lawmakers, reflecting widespread concerns over the transparency and value of the deals.

The U.S. indictment alleges that Adani and seven others paid US$265 million in bribes to Indian officials. While the Adani Group has denied the charges, calling them baseless, it pledged to pursue legal remedies.

The airport project first surfaced in March but bypassed competitive bidding, only becoming public through a social media leak in July. The project was temporarily halted by a Kenyan court in September, following a lawsuit claiming taxpayers would not benefit.

Despite mounting criticism, senior officials, including Ruto, had previously defended the agreements. On the day of Ruto’s announcement, Energy Minister Opiyo Wandayi reiterated to senators that the transmission lines contract faced no allegations of bribery or corruption.

Legal experts, such as procurement specialist George Kamau, believe Adani Group may challenge the cancellations through arbitration. However, Kamau suggested the integrity concerns cited by the government could favour Kenya in any dispute resolution.

This development follows a broader cloud of allegations against the Adani Group, including claims by U.S. short-seller Hindenburg Research in 2023 of poor governance practices—charges the company has consistently denied.