Ruto cancels JKIA, KETRACO deals with Adani Group after bribery scandal

President William Ruto has ordered the cancellation of all the ongoing transactions with the Indian international company, Adani Group.

Speaking during the State of the Nation address at Parliament, Ruto said the decision was due to "new information provided by partner nations" after the Indian billionaire Gautam Adani, was indicted for fraud in New York.

He noted that he keeps his word that in the face of undisputed evidence or credible information on corruption against Adani, he will not hesitate to take decisive action.

“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,” he said.

The President tasked Transport CS Davis Chirchir and his Energy counterpart Opiyo Wandayi to end the ongoing public-private partnership discussion with the Indian firm.

Members of Parliament who were following through the address applauded the President immediately after the announcement.

President William Ruto is being received by National Assembly Speaker Moses Wetang'ula at Parliament Buildings. (X/NA)

Bribery scandal

The directive came barely 24 hours after the Indian Group faced indictment in an ongoing case at the United States of America Federal Court.

Gautam Adani, the head of the Adani Group and one of the richest people in the world, has been charged in New York for being involved in a large fraud scheme, according to US prosecutors.

On Wednesday, authorities accused Adani and two other executives from Adani Green Energy, his nephew Sagar Adani and Vneet Jaain, of agreeing to pay over $250 million in bribes to Indian government officials between 2020 and 2024.

This was done to secure solar energy supply contracts that were expected to bring in $2 billion in profits.

Prosecutors said the renewable energy company also took out over $3 billion in loans and bonds during this time by making false and misleading statements.

Five other people were also charged with criminal conspiracy, including two executives from another renewable energy company and three employees from a Canadian investment group.

The Adani Group denied the charges on Thursday.

The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India on April 13, 2021. (Photo: File/REUTERS/Amit Dave)

JKIA deal

The government is said to have entered into a concession deal with the Indian firm to expand the Jomo Kenyatta International Airport (JKIA) and run the operations for 30 years.

Adani Group wanted to invest $2 billion (Sh260 billion) in JKIA for a new terminal and runway.

However, the process had been slowed as the matter headed to the corridor of justice. A case challenging the proposed lease of JKIA to Adani Group was set to be heard by a three-judge bench on December 17, 2024.

The panel, consisting of Justices Jairus Ngaah, Moses Ado, and Lucy Njuguna, were to review an application from the Kenyan government that sought to overturn an earlier court order blocking the lease deal.

The case began when Justice John Chigiti issued a temporary order halting the implementation of the lease. This injunction aimed to prevent any action on the proposed lease until the matter is resolved in court.

In response, the state filed an application to have this order set aside.

The Treasury, Attorney General, Cabinet Secretary for Transport Davis Chirchir, the Public Private Partnership (PPP) Directorate, and the PPP Committee argued that disputes over decisions made by the contracting authority or PPP entities should be handled by a petition committee, as stipulated in the Public Private Partnership Act.

For KETRACO, CS Wandayi announced on October 11, 2024, the signing of a multi-billion shilling deal with Adani Energy Solutions Limited.

Wandayi stated that the deal, which is estimated at Sh95.68 billion (USD 736 million), will see the Indian company develop, finance, construct, and operate critical transmission lines and substations across the country.