Kenya’s government has terminated all public-private partnership contracts with subsidiaries of India’s Adani Group.
The move follows the indictment of billionaire Gautam Adani in the US on Wednesday on charges of bribery and fraud.
President William Ruto announced the cancellation of the multi-million dollar deals in the energy, transport, and health sectors during his State of the Nation address on Thursday. He cited the emergence of “credible information on corruption.”
“I have stated in the past, and I reiterate today, that in the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action.
Accordingly, I now direct – in furtherance of the principles enshrined in Article 10 of the Constitution on transparency and accountability, and based on new information provided by our investigative agencies and partner nations – that the procuring agencies within the Ministry
of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA Expansion Public Private Partnership transaction, as well as the recently concluded KETRACO transmission line Public Private Partnership contract, and immediately commence the process of onboarding alternative partners.| said the head of state.
The US Department of Justice alleges that Adani schemed to pay over $250 million in bribes to Indian government officials to secure solar energy contracts and lied to US investors to finance the project. Adani Group has denied the allegations.
Recent Adani Group projects in Kenya included a $736 million deal for power infrastructure and a $1.85 billion lease for the country’s largest airport. Both deals had been subject to legal challenges.
The cancellation of these contracts could have significant implications for Kenya’s infrastructure development plans and its relationship with India.
