Kenyan President William Ruto has annulled multimillion-dollar contracts with the Indian conglomerate Adani Group following allegations of bribery and fraud involving its founder, Gautam Adani, in the United States. The canceled agreements include a $2 billion plan to modernize Nairobi’s Jomo Kenyatta International Airport and a $736 million project to construct power transmission lines.
In his state of the nation address, Ruto cited “critical findings from investigative agencies and partner nations” as the reason for the decision. Parliamentarians greeted the announcement with applause, reflecting strong public and political resistance to the deals.
The airport modernization project, which involved building a second runway and upgrading the passenger terminal, faced sharp criticism for bypassing competitive bidding processes. Details of the agreement surfaced through leaked documents, sparking concerns about transparency, taxpayer value, and potential job losses. Protests and strikes by airport workers further amplified opposition. Although initially defended by senior officials, including Ruto, the project was paused by a Kenyan court in September amid legal and financial challenges.
The $736 million transmission lines contract, awarded just last month as part of a public-private partnership, was also scrapped. Earlier, Energy Minister Opiyo Wandayi had denied any allegations of bribery in the deal. However, the government’s reversal reflects a significant policy shift following new corruption allegations against the Adani Group.
The cancellations come on the heels of U.S. federal indictments accusing Gautam Adani and others of paying $265 million in bribes to secure approvals for a solar energy project in India. Charges include securities fraud and conspiracy to commit wire fraud. Adani has denied the allegations, vowing to pursue legal recourse.
These new accusations compound scrutiny of the Adani Group, which faced governance concerns raised by Hindenburg Research in 2023. While Adani denied those claims, they intensified global criticism of the company’s operations.
By voiding the contracts, Ruto’s administration signals a commitment to transparency and accountability. Public and political pressure played a crucial role in challenging these deals. However, the cancellations leave Kenya facing potential setbacks in infrastructure modernization and foreign investment. The government will need to forge alternative partnerships to meet its development goals while upholding public trust.
For the Adani Group, the termination of these contracts underscores its mounting legal and reputational challenges, as its global activities in energy, infrastructure, and transportation face intensified scrutiny.
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