This includes the Adani-Jomo Kenyatta International Airport (JKIA) deal and the Adani-KETRACO deal.
President William Ruto has directed the cancellation of all deals the Kenyan government has with the Indian conglomerate Adani Group.
This includes the Adani-Jomo Kenyatta International Airport (JKIA) deal and the Adani-Kenya Electricity Transmission Company Limited (KETRACO) deal.
Speaking on Thursday, November 21, during his State of the Nation address in Parliament, the Head of State asked Transport CS Davis Chirchir and his Energy counterpart Opiyo Wanday to end the ongoing public-private partnership discussion with Adani Group Holdings.
“I have stated in the past, and I reiterate today, that in the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” announced the Head of State in a directive followed by raucous cheers from Members of Parliament and Senators.
Chairman of Adani Group Gautam Adani. /PHOTO
”Accordingly, I now direct – in furtherance of the principles enshrined in Article 10 of the Constitution on transparency and accountability, and based on new information provided by our investigative agencies and partner nations – that the procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA Expansion Public Private Partnership transaction, as well as the recently concluded KETRACO transmission line Public Private Partnership contract, and immediately commence the process of onboarding alternative partners.”
The announcement immediately caught the attention of Members of Parliament who followed the address as they stood and heaped praises and songs to the President.
Ruto’s directive handed Adani a second defeat hours after the United States (US) government indicted its founder Gautam Adani and several directors in a Ksh32 billion ($250 million) bribery case.
Adani and other executives were indicted in New York on Wednesday, November 21 by US prosecutors for their alleged roles in a yearslong, multi-million-dollar bribery and fraud scheme involving plans to develop a major solar power plant.
The Department of Justice (DOJ) said in a statement that Adani, a key ally of Indian Prime Minister Narendra Modi, and seven other executives, including his nephew Sagar Adani, promised more than $250 million in bribes to Indian government officials to secure solar energy contracts.
According to a report by CNN, the impact of the allegations, which come more than a year after a US short-seller accused Adani Group of stock manipulation and accounting fraud, was immediately felt across the sprawling conglomerate.
On Thursday, shares in the group’s listed firms fell between 10% and 20%, wiping out just under $30 billion (Ksh3.9 trillion) in total market value according to Reuters data.
The DOJ alleged that the solar energy supply contracts were projected to raise more than $2 billion (Ksh259 billion) in profits after tax over an approximately 20-year period.
Authorities stated that Adani, 62, personally met with an Indian government official to “advance” the scheme, which took place between 2020 to 2024. The defendants frequently met and allegedly discussed the bribery scheme, including evidence on several phones.
“This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” Deputy Assistant Attorney General Lisa Miller said in the statement, adding “These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors.”
Right after the indictment caused uproar in Kenya, Energy Cabinet Secretary Opiyo Wandayi stated that the developments would not affect the Kenya Electricity Transmission Company Limited (KETRACO) deal with Adani Energy Solutions.
Appearing before the Senate Committee on Finance on Thursday, November 21, Wandayi argued that the indictment of Adani in the bribery case was not connected to the deal.
The Indian-based conglomerate on its part in a short and sharply-worded statement penned an instant letter responding to the charges levelled by the US Department of Justice (DOJ) and the US Securities and Exchange Commission, terming the allegations against the directors of Adani Green as baseless and denied.
India’s Adani Group office. /BUSINESS STANDARD