Kenyan President cancels Adani's 30-year lease proposal for JKIA
This announcement occurred less than a day after a subsidiary group of the Indian conglomerate faced a criminal indictment by the US Department of Justice.
During the State of the Nation address in Parliament, Kenyan President William Ruto announced the termination of the government's contractual engagement with the Adani Group regarding its proposal for a 30-year lease agreement for Jomo Kenyatta International Airport (JKIA). The President has instructed Transport Cabinet Secretary Davis Chirchir and Energy Cabinet Secretary Opiyo Wandayi to conclude the ongoing public-private discussions with the Indian conglomerate.
President Ruto noted that his decision was influenced by credible evidence of corruption. He emphasised that this decision arose from significant transparency concerns related to the deal's violations. Although the Adani deal is no longer an option, the President stated that they will immediately seek alternative partners, which is crucial for the country's interests.
"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," announced the President during his parliament session.
The Kenyan President's announcement comes less than a day after the US Department of Justice (DoJ) issued a five-count criminal indictment against Gautam Adani, Chairman of the Adani Group, and several of his business associates. Although the Adani Group has denied the allegations against Adani Green, calling them "baseless," the charges from the DoJ include allegations of offering over $250 million in bribes to Indian government officials to secure solar energy contracts. The indictment also includes conspiracies to commit securities and wire fraud and orchestrating a "multi-billion dollar scheme" to defraud US investors and global financial institutions through misleading statements.
The President's decision came two months after the Kenyan court announced a temporary block on Adani's proposal to lease JKIA. This block was initiated by the Law Society of Kenya and the Kenyan Human Rights Commission, which argued that the lease is too costly and poses risks to jobs and fiscal stability.
The President also announced the cancellation of a $736 million, 30-year public-private partnership agreement between the energy ministry and Adani Energy Solutions , a unit of the Adani Group. The agreement, signed in October with the Kenya Electrical Transmission Company for the construction of power transmission lines, had already been suspended in the same month by the Kenyan Court.
