NAIROBI – In a significant governmental shift, Kenyan President William Ruto has terminated all ongoing procurement processes with the Adani Group, including a major airport control transfer and a $736-million energy contract. These decisions come in the wake of U.S. indictments involving Gautam Adani, the conglomerate’s leader.
The canceled agreements include the expected handover of Kenya’s principal airport’s operations to Adani Group and a 30-year public-private partnership for constructing power transmission lines, which was established last month. This move reflects the Kenyan government’s response to recent international legal developments.
In his State of the Nation address, President Ruto cited “new information provided by investigative agencies and partner nations” as the reason for the abrupt policy change. He instructed the Ministry of Transport and the Ministry of Energy and Petroleum to cease the ongoing procurement immediately.
The United States authorities reported on Wednesday that Gautam Adani and seven others had consented to pay approximately $265 million in bribes to Indian officials. However, the Adani Group has denied these allegations and announced its intention to pursue all available legal options.
In defense of the energy contract, Energy Minister Opiyo Wandayi stated earlier today that there was no bribery or corruption involved in the awarding of the transmission lines contract.
The cancellation of these deals signifies a cautious approach by the Kenyan government to avoid potential entanglement with international legal issues. It also underscores the importance of due diligence and transparency in public-private partnerships, especially those involving foreign investments.
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