Kenya Terminates Engagement With Adani Group

Kenyan President William Ruto has announced the cancellation of the country’s engagements with India’s Adani Group in the Energy & Transport sectors.

President Ruto announced on Thursday, during his State of the Nation Address. “In the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” said Ruto in a speech.

Reason For Cancellation

The President’s announcement comes in the wake of the indictment by the US Department of Justice of billionaire Gautam Adani for bribery involving at least US$250.0M (Kes 32.4 billion) in payments to Indian government officials for solar energy contracts.

On Oct 11th, Kenya Electricity Transmission Company (KETRACO) announced the successful signing of a Project Agreement with Adani Energy Solutions Ltd paving the way for the Indian conglomerate to raise all the funding (Kes 95.68 billion, US$ 736.0M) in the form of debt & equity for projects to be repaid over 30 years.

Adani Group was also contracted for the planned expansion of the Jomo Kenyatta International Airport (JKIA) through a public-private partnership arrangement. The company was set to invest $1.85bn in Kenya’s main airport in exchange for a contract to run it for 30 years.

Under this proposal, the upgrades would involve a new runway and an improved passenger terminal at the Jomo Kenyatta International Airport. This deal sparked a strike among airport workers in September, as many feared it would lead to job losses.

Asked about any penalties associated with the cancellation, the National Treasury has argued that it was still in the due diligence stage with Adani & therefore no such consequences.