The recent cancellation of Adani Group’s infrastructure deals in Kenya has ignited significant discussions surrounding governance, public trust, and the nation’s development trajectory.
Homa Bay Town Member of Parliament (MP) Peter Kaluma has defended President William Ruto’s decision, asserting that the cancellation was not influenced by the US indictment of the Indian conglomerate nor a reflection of Kenya’s ability to attract global investors.
Kaluma, who had previously defended the Adani deals, took to X on Friday, November 22, 2024, to clarify that the decision to cancel the contracts was in no way tied to the indictment facing Adani in the United States.
He emphasized that the legal suspension of the Adani deals in Kenya was already in place due to a case challenging the deals’ adherence to transparency and competition requirements.
“Kenya’s High Court had suspended Adani deals pending hearing and determination of the pending case challenging adherence to the requirement of transparency and competition in the deals. It is not clear how long it would have taken the courts to finally determine the matter,” Kaluma noted in his statement.
Legal hurdles
The deals, which involved infrastructure projects at Jomo Kenyatta International Airport (JKIA) and with Kenya Electricity Transmission Company (KETRACO), had been in limbo for some time, with the High Court suspending them amid concerns over the transparency of the arrangements.
Kaluma pointed out that the uncertainty over the court’s timeline left the projects stalled, further complicating the nation’s infrastructure goals.
However, Ruto’s decision to cancel the contracts brought a swift resolution to the issue, ending the legal and political impasse.
Kaluma praised the president’s decisive action, arguing that it allowed for new, transparent solutions to emerge for the country’s critical infrastructure needs.
“By directing the cancellation of the deals, the President has settled the dispute at once, opening the way for those concerned to critically think through the new arrangements to get the intended infrastructure developed,” Kaluma remarked.
The Homa Bay Town MP also pointed to Adani’s tarnished reputation, both locally and internationally, as a factor that made continuing the deals untenable.
According to Kaluma, the Adani Group has faced several allegations of financial misconduct and corruption, which have contributed to its negative perception in Kenya.
“The President has done well to direct the cancellation. Adani had become a poisoned chalice with the name so damaged in the public eye that no one would care whether it would in fact deliver. “Banyiani mbaya kiatu chake dawa” couldn’t help,” Kaluma said, indicating that even if the company were able to fulfil the contracts, the negative perception would likely have hindered public support.
The MP concluded his statement by emphasizing the broader lessons to be learned from the situation, particularly regarding leadership and governance.
He lauded the government’s responsiveness to public concerns, arguing that the decision reinforced the importance of listening to the people and adhering to procedural fairness in governance.
“Procedure is the handmaiden of substance. Listening to the people is a leadership virtue. Kenya has won,” Kaluma said, reaffirming the belief that the cancellation was in the best interest of the country.
The cancellation of the Adani deals, while controversial, may ultimately pave the way for more transparent and accountable infrastructure development in Kenya.
After cancelling the Adani deals, Ruto reassured Kenyans of the projects’ significance and directed the Ministry of Transport and the Ministry of Energy and Petroleum to onboard new partners.
“I have ordered the two ministries to immediately commence the process of onboarding alternative partners because these are important,” Ruto said.