Kenya Halts Adani's Airport Deal and Energy Project

NAIROBI - In a significant government shake-up, Kenyan President William Ruto has terminated all ongoing procurement processes with the Adani Group, encompassing a major airport control handover and a $736 million energy contract. These decisions follow U.S. indictments involving the group's leader, Gautam Adani.
Among the canceled agreements is the transfer of operations of Kenya's main airport to the Adani Group and a 30-year public-private partnership for the construction of power transmission lines established last month. This move reflects the Kenyan government's response to recent international legal developments.
In a national address, President Ruto cited "new information provided by investigative agencies and partner countries" as the reason for the sudden policy shift. He instructed the Ministry of Transport and the Ministry of Energy and Petroleum to immediately halt ongoing procurement processes.
U.S. officials reported on Wednesday that Gautam Adani and seven others have agreed to pay approximately $265 million in bribes to Indian officials. However, the Adani Group has denied these allegations and stated its intention to pursue all available legal options.
Defending the energy contract, Energy Minister Opiyo Wandayi clarified earlier today that there was no bribery or corruption involved in the awarding of the transmission line contract.
The cancellation of these agreements demonstrates a cautious approach by the Kenyan government to avoid potential entanglement in international legal issues. It also underscores the importance of due diligence and transparency, particularly in public-private partnerships involving foreign investment.