Kenya's President William Ruto has announced the cancellation of two with Adani Group following corruption allegations against its founder, Gautam Adani, in the United States. The deals included a $2 billion airport development project and a $736 million energy infrastructure agreement.
Airport Development Project Halted
The $2 billion project proposed by the Adani Group involved constructing a second runway and upgrading the passenger terminal at Jomo Kenyatta International Airport. The project was submitted through a non-competitive bidding process in March. This triggered widespread criticism, leading to a Kenyan court temporarily blocking the deal in September. The court noted concerns about whether the proposal offered value for taxpayers.
Energy Contract Canceled
A separate agreement, worth $736 million was also terminated. This deal was signed with Kenya’s Ministry of Energy and Petroleum for the construction of transmission lines over 30 years. President Ruto announced the cancellations during his state of the nation address. The deals have faced intense criticism from Kenyan citizens and opposition leaders, who questioned the transparency of the agreements. They expressed concerns about the use of a non-competitive process for such major projects.
US Indictment and Allegations
The cancellations follow allegations by US authorities that Gautam Adani and seven others paid $265 million in bribes to Indian government officials. The Adani Group has denied the accusations and vowed to pursue “all possible legal recourse.”
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