Kenyan President William Ruto has terminated two significant deals with India’s Adani Group, citing concerns over integrity issues following allegations of bribery involving the group’s founder in the United States. The cancellations were announced during Ruto’s state of the nation address on Thursday.
One of the deals, valued at nearly $2 billion, proposed handing over operations at Jomo Kenyatta International Airport to Adani Group, including upgrading facilities and building a second runway in exchange for a 30-year lease. A separate $736 million agreement to construct power transmission lines under a public-private partnership was also nullified.
Ruto instructed officials in the Ministries of Transport and Energy to immediately halt the procurement processes, attributing his decision to new evidence from investigations conducted by Kenyan authorities and international partners.
Parliament welcomed the announcement with loud applause, reflecting public and political disapproval of the agreements due to transparency concerns and questions about their economic benefits.
The Adani Group, which denies allegations of corruption and maintains its commitment to pursuing legal remedies, has not yet commented on the cancellation.
The airport deal, initially proposed in March, bypassed competitive bidding and became public through a social media leak in July. It faced legal challenges, with a court blocking the plan in September over questions about its value to taxpayers.
Observers believe the Adani Group may seek arbitration over the cancellations. However, Kenyan legal experts suggest that the integrity concerns underpinning the decision could strengthen the state’s position in any potential disputes.
This development comes amid mounting scrutiny of the Adani Group following allegations of governance lapses and bribery, further intensifying the global focus on the conglomerate’s practices.
