Kenya’s President announced on Thursday (November 21, 2024) the cancellation of lucrative airport expansion and energy deal with Indian businessman Gautam Adani due to corruption and fraud charges in the United States against one of Asia’s wealthiest individuals.
In a national speech, President William Ruto stated that the decision was made due to “new information from our investigative agencies and partner countries”. He failed to mention the United States.
The Adani group had been in the process of signing an agreement that would modernise Kenya’s main airport in the capital, Nairobi, with an additional runway and terminal constructed, in exchange for the group running the airport for 30 years.
The heavily condemned agreement had triggered demonstrations against Adani in Kenya and a walkout by airport staff, citing potential declines in working conditions and employment cuts in specific situations.
The Adani group also received a contract to build electricity transmission lines in Kenya, which is the business center of East Africa.
Also read: Adani Faces US Arrest Warrant Over Bribery Charges
Lawmakers in parliament erupted into thunderous applause and cheers when Ruto made his announcement. Many politicians and members of the public have voiced strong criticism of the agreements due to worries about transparency and cost-effectiveness.
Adani Group representatives failed to promptly reply to a comment request.
The indictment on Wednesday stated that Gautam Adani, the founder of the group and one of the wealthiest individuals globally, along with seven other defendants, agreed to give approximately $265 million in bribes to Indian government officials, as per U.S. authorities.
According to Kenyan lawyer George Kamau, who specializes in public procurement, the Adani Group could resort to arbitration to dispute the cancellations, particularly regarding the transmission lines contract that had been previously agreed upon.
