Adani fallout: Spotlight now turns to Sh104 billion health system deal

The fate of a Sh104 billion healthcare deal involving the Adani Group and the Ministry of Health remains unclear following President William Ruto's recent directive to cancel two major contracts with the Indian conglomerate.

The President ordered the cancellation of the energy and aviation deals during his State of the Nation address on Thursday, citing credible evidence of corruption.

"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," Ruto said.

He added that the agreements under the Ministry of Transport and Ministry of Energy would be scrapped immediately, with alternative partners sought for the projects.

Despite this move, the President did not address the involvement of Adani-linked Apeiro Limited in a Sh104 billion contract to implement Kenya's Universal Health Coverage (UHC) program.

The project, led by a consortium comprising Safaricom, Konvergenz Network Solutions, and Apeiro, aims to deliver an Integrated Healthcare Technology System (IHTS) over the next decade.

Clarity

Seme MP and Health Committee member Dr James Nyikal voiced his concerns, calling for clarity on the health project.

"Adani cancellation is the best thing. I think we should have acted much earlier because we had information about this company. But we are concerned with Adani in healthcare. If the government is cancelling other contracts, we must also look at this one," he stated.

Wiper Party leader Kalonzo Musyoka echoed these sentiments, urging the President to act decisively.

"It is not enough to cancel the Adani Group deals in JKIA and KETRACO; Adani is also in SHA/SHIF. Ruto should also cancel this deal immediately," Kalonzo said on his X feed.

Kalonzo further announced plans to return to court on November 27, 2024, to demand greater accountability over the cancelled deals.

A State House official told The Eastleigh Voice that "there is no Adani in the SHA-Safaricom deal."

Treasury CS John Mbadi added that the cancelled contracts were still in the procurement phase and could be halted without legal complications.

"The negotiations had not even begun. For JKIA, we were still doing due diligence. To me, it's timely. It's stopped at a time when we don't have any legal challenges, and reports from our partners raised questions about the procurement method," he said.

Scrutiny

Despite this, the health project continues to face scrutiny. Apeiro, a key consortium member, has ties to Abu Dhabi-based Sirius International Holding, a subsidiary of International Holding Limited, raising questions about the transparency of its ownership structure.

The President's cancellation directive comes just weeks after he praised Adani's role in Kenya's energy sector.

Speaking during the groundbreaking of the Menengai Geothermal site, Ruto lauded Adani's investment.

"The Adani Group is investing Sh95 billion of its own money in the transmission line. Had we borrowed that money, it would have burdened the people of Kenya."

Energy CS Opiyo Wandayi also announced a transformative project agreement between Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions last month, further highlighting the mixed signals surrounding the conglomerate's role in Kenya.