Amid a backdrop of controversy, top brass in Kenya’s government, including President William Ruto, staunchly defended controversial accords with the Adani Group [File: Simon Maina/AFP]. However, the tide has turned. President Ruto decided to annul the procurement process poised to hand the keys of Kenya’s primary airport to India’s corporate heavyweight, Adani Group, following the indictment of its founder in the U.S.
This dramatic revelation came on Thursday as part of Ruto’s address to the nation. The original agreement, a hefty $2 billion transaction, was slated to see the Adani Group bolster Jomo Kenyatta International Airport with a second runway and revamp its passenger terminal. In return, they’d secure a lease lasting three decades.
Not stopping there, Ruto further negated another substantial agreement—a 30-year, $736 million public-private partnership with Adani’s subsidiary inked recently with the Ministry of Energy and Petroleum for constructing power transmission lines.
“I have instructed transport and energy agencies to immediately halt current procurement processes,” Ruto proclaimed, citing newfound details from investigative bodies and allied nations that prompted this bold action.
His announcement ignited a cacophony of applause and whistles in the parliamentary halls, marking the end of deals criticized heavily by politicians and the populace alike, amid fears of lackluster transparency and inadequate returns on investment.
How about a word from the involved party? Representatives of Adani Group stayed mum, leaving requests for statements unresponded to.
U.S. prosecutors dropped a bombshell, indicting Gautam Adani, amongst the planet’s wealthiest, alongside seven others, alleging they dished out $265 million in bribes to pliant Indian officials. Naturally, the Adani Group shrugged off these allegations, vowing to explore every possible legal avenue.
As for the airport deal, Adani ventured into the fray under procedures sidestepping competitive bidding back in March. Yet, it only surfaced in public discourse by July, courtesy of a social media leak. This provoked the Kenyan judiciary to step in, temporarily halting the deal after a suit claimed it shortchanged taxpayers.
From President Ruto on down, top government figures stood firm, defending the deals even as accusations from 2023 courtesy of U.S. short-sellers Hindenburg Research—dismissing Adani’s corporate governance antics—swirled relentlessly.
Undeterred, as Thursday dawned, Energy Minister Opiyo Wandayi maintained there was zero bribery or corruption in the power lines contract and anticipated its continuation.
Kenya’s legal eagle, specialist in public procurement, George Kamau, chimed in. He foresaw Adani seeking arbitration to contest the annulments, particularly the ink-dry power agreement. Yet, Kamau hinted at a formidable challenge. “Any dispute might slant towards the Kenyan government’s stance, given integrity concerns as grounds for cancellation,” he speculated.
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
