Kenyan President William Ruto announced the cancellation of two significant deals involving India’s Adani Group following bribery allegations against its founder, Gautam Adani, in the United States. The decision was revealed during Ruto’s state of the nation address on Thursday.
Key Cancellations:
- Airport Management Deal:
- The procurement process to hand over control of Kenya’s main airport to Adani Group has been terminated.
- Power Transmission Lines Contract:
- A 30-year, $736-million public-private partnership signed last month with an Adani Group unit to construct power transmission lines has also been revoked.
Reasons for Cancellation:
Ruto cited “new information provided by investigative agencies and partner nations” as the basis for his directive. The cancellations come in the wake of U.S. prosecutors alleging that Adani and seven other individuals paid approximately $265 million in bribes to Indian officials to secure solar energy contracts.
Statements:
- Ruto emphasized the importance of integrity in procurement, saying, “I have directed agencies within the ministries of transport and energy to immediately cancel the ongoing procurement.”
- Kenya’s Energy Minister Opiyo Wandayi earlier defended the transmission lines deal, claiming there was no corruption involved.
Adani Group’s Response:
The Adani Group denied the allegations and stated its intent to pursue “all possible legal recourse.”
The cancellations mark a significant setback for the Adani Group, further intensifying global scrutiny following the U.S. indictments.
