Key Points
- Kenya terminated an airport procurement process and a $736 million energy partnership with India’s Adani Group.
- The decision follows U.S. bribery allegations against Adani Group founder Gautam Adani and seven others.
- U.S. authorities alleged Adani paid $265 million in bribes to Indian government officials. Adani Group denied the charges and plans to pursue legal remedies.
- The cancellations reflect Kenya’s emphasis on transparency and may influence its future partnerships with global investors.
On Thursday, Kenyan President William Ruto announced the cancellation of two major deals involving India’s Adani Group after Gautam Adani, its founder, was indicted in the United States on bribery allegations. Ruto ordered the immediate termination of a procurement process that was set to grant control of Kenya’s main airport to the Adani Group. A 30-year, $736 million public-private partnership to construct power transmission lines was also revoked between Kenya’s energy ministry and an Adani Group subsidiary.
“I have directed agencies within the ministry of transport and within the ministry of energy and petroleum to immediately cancel the ongoing procurement,” Ruto stated. He attributed the decision to “new information provided by investigative agencies and partner nations.”
The cancellations come after U.S. authorities revealed on Wednesday that Gautam Adani and seven other defendants allegedly paid approximately $265 million in bribes to Indian government officials. Ruto noted that these allegations raised serious concerns about the integrity of ongoing partnerships with the Adani Group.
In response, the Adani Group strongly denied the accusations, stating that it would pursue “all possible legal recourse” to defend itself. Despite the U.S. indictment, the conglomerate has maintained that it adheres to the highest standards of corporate governance.
Earlier on Thursday, Kenyan Energy Minister Opiyo Wandayi defended the energy deal, stating that there was no evidence of bribery or corruption in awarding the transmission lines contract. However, Ruto’s directive underscores a zero-tolerance approach to potential ethical lapses in public-private partnerships.
The canceled agreements mark a significant setback for the Adani Group’s international ambitions, particularly in Africa, where it has been expanding its infrastructure and energy footprint. For Kenya, the decision aligns with President Ruto’s commitment to ensuring transparency and accountability in major government projects.
As the legal battles and investigations unfold, this development is expected to have broader implications for Kenya’s global investment partnerships and the future of its infrastructure development plans.
