Kenya Cancels Adani Deals After US Indictment
After billionaire Gautam Adani, the founder and chairman of Indian conglomerate Adani Group, has been charged in the US with bribery and fraud, and the subsequent crash of several Adani Group shares, including those of the flagship firm Adani Enterprises, bad news coming in from Kenya for the group. Kenyan President William Ruto has terminated two major deals involving the Adani Group, following the indictment of its chairman Gautam Adani by US authorities. The cancelled agreements include a KSh96.68 billion power transmission project with the Kenya Electricity Transmission Company (Ketraco) and a proposed KSh230 billion lease of Jomo Kenyatta International Airport (JKIA).
In his State of the Nation address, President Ruto emphasised the need for transparency and accountability. “In the face of credible information on corruption, I will not hesitate to act decisively. I have directed the cancellation of the JKIA expansion project and the Ketraco transmission line contract and initiated the search for alternative partners,” he said. The President attributed the decision to evidence from investigative agencies and foreign partners.
This announcement follows Energy Cabinet Secretary David Chirchir’s defence of Adani Group in Parliament. Chirchir claimed that thorough due diligence had cleared the company of corruption allegations and confirmed its technical, legal, and financial capacity. “Adani has no history of corruption, is solvent, and tax compliant across jurisdictions. Its directors hold clean criminal records,” Chirchir asserted.
Transport Cabinet Secretary Davis Chirchir had also earlier defended the JKIA project, stating that it had undergone a comprehensive review. However, opposition leader Raila Odinga warned against mishandling Public-Private Partnerships (PPPs), highlighting their importance for Kenya’s economic development. Speaking through his lawyer Paul Mwangi, Odinga stressed the need for transparency to maintain foreign investor confidence.
The Adani Group has been embroiled in controversy, particularly after US prosecutors charged Gautam Adani and other executives with a $265 million bribery scheme in India. The allegations involve fraudulent practices to secure solar energy contracts and misleading US investors. The US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have accused Adani and his associates of securities fraud, bribery, and obstruction of justice.
