Kenyan President William Ruto has announced the cancellation of two high-profile deals involving India’s Adani Group, valued at over $2.5 billion, following the indictment of the group’s founder in the United States on bribery charges. The projects, which faced criticism over transparency and governance, included the management of Kenya’s largest airport and a major power transmission project.
During his State of the Nation address on Thursday, Ruto revealed that the deals had been scrapped due to “new information provided by investigative agencies and partner nations.” His decision was met with applause in parliament, reflecting public sentiment against the controversial agreements.
Airport Deal Scrapped
Under the nearly $2 billion agreement, the Adani Group had proposed upgrading Jomo Kenyatta International Airport by adding a second runway and enhancing the passenger terminal in exchange for a 30-year lease. The deal, which bypassed competitive bidding processes, was leaked on social media in July and subsequently met with public and legal challenges. In September, a Kenyan court temporarily blocked the agreement, citing concerns over its value for taxpayers.
The lack of transparency surrounding the deal had fueled criticism from lawmakers and civil society. Despite previous government support, the mounting pressure and recent developments prompted the president to revoke the procurement process.
Power Transmission Project Axed
A separate $736 million public-private partnership deal signed last month between the Adani Group and Kenya’s Ministry of Energy to construct power transmission lines was also cancelled. Energy Minister Opiyo Wandayi had defended the agreement as recently as Thursday morning, stating there was no evidence of bribery or corruption. However, the president’s directive has now rendered the contract void.
“I have directed agencies within the Ministry of Transport and the Ministry of Energy and Petroleum to cancel the ongoing procurement immediately,” Ruto said. His remarks underscored the government’s commitment to addressing concerns over integrity and governance in such high-value projects.
U.S. Indictment Adds to Pressure
The cancellation follows an indictment in the United States on Wednesday, accusing Adani Group founder Gautam Adani and seven other defendants of paying $265 million in bribes to Indian government officials. The Adani Group has denied the allegations, calling them “baseless” and vowing to seek “all possible legal recourse.”
The allegations add to the controversy that has dogged the conglomerate since 2023 when U.S. short-seller Hindenburg Research accused it of improper governance practices. Those claims, too, were denied by the group but had already tarnished its reputation globally.
Legal Challenges Loom
The Adani Group is expected to challenge the cancellations through arbitration, especially regarding the power transmission deal, which had already been signed. George Kamau, a Kenyan lawyer specializing in public procurement, noted that while arbitration could be pursued, the state’s position would likely be favoured given the integrity concerns cited as the basis for the cancellations.
“Any dispute resolution framework … is likely to lean towards the state,” Kamau explained.
A Turning Point in Kenyan Governance
The scrapping of these deals marks a significant move by the Kenyan government to address public outcry and demonstrate accountability in large-scale projects. Critics had long accused the agreements of lacking transparency and undermining public trust.
While the Adani Group has yet to respond officially, the cancellations underscore the growing scrutiny of global business practices and the potential consequences of governance lapses on international investments.