President William Ruto has directed the cancellation of two significant procurement deals with India’s Adani Group, following the indictment of the company’s founder, Gautam Adani, in the United States on bribery charges.
The decision was revealed by President Ruto during his State of the Nation address on Thursday.
The proposed agreements were set to reshape Kenya’s infrastructure, with the Adani Group gaining control over major national assets.
One deal, valued at nearly $2 billion, would have seen Adani Group add a second runway and upgrade the passenger terminal at Jomo Kenyatta International Airport, in exchange for a 30-year lease.
Additionally, a separate public-private partnership worth $736 million, signed last month, would have seen an Adani Group subsidiary collaborate with the Ministry of Energy and Petroleum to construct power transmission lines.
Both deals were still in the procurement phase.
Ruto Orders Immediate Cancellation of Contracts
President Ruto announced that the contracts would be canceled immediately, citing “new information provided by investigative agencies and partner nations” as the reason. “I have directed agencies within the Ministry of Transport and the Ministry of Energy and Petroleum to immediately cancel the ongoing procurement,” he stated.
The announcement was met with enthusiastic applause and cheers from lawmakers in parliament, reflecting strong support for the decision.
These proposed deals had drawn significant criticism from both politicians and the public, with concerns over a lack of transparency and questions about their value for money.
US Indictment of Adani Group Founder Gautam Adani
The cancellations come after US authorities indicted Gautam Adani and seven others on Wednesday.
The indictment alleges that the Adani Group’s founder and his associates paid approximately $265 million in bribes to Indian government officials.
In response, the Adani Group denied the allegations and pledged to pursue “all possible legal recourse.”
The airport development proposal was initially made by the Adani Group in March, but the details did not emerge publicly until July when they were leaked on social media.
The procurement process had been criticized for bypassing the competitive bidding process, raising additional concerns among stakeholders.
