Kenyan President William Ruto has scrapped two high-profile agreements with India’s Adani Group following U.S. bribery charges against its founder. These deals included a contract to manage Kenya’s main airport and a multimillion-dollar power transmission project.
Key Developments
- Airport Deal Canceled: President Ruto terminated the procurement process that would have handed control of Kenya’s primary airport to the Adani Group.
- Power Line Project Axed: A $736
R13,478.57 million, 30-year public-private partnership deal with an Adani Group subsidiary for power transmission lines was also annulled. - Reason for Action: Ruto cited credible corruption allegations against the company’s founder, Gautam Adani, as the driving factor.
Bribery Allegations in the U.S.
U.S. prosecutors have accused Adani and his executives of orchestrating a massive bribery scheme. Allegedly, the group paid $265
R4,853.02 million in bribes to secure solar energy contracts from the Indian government between 2020 and 2024.
On Wednesday, U.S. authorities indicted Adani and seven others, leading to a global ripple effect. Kenyan President Ruto addressed the matter during a state of the nation speech:
“In the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” he declared.
Adani Group Denies Allegations
The Adani Group has dismissed the bribery claims as baseless. A spokesperson stated:
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations.”
Despite this, the allegations have caused significant financial and reputational damage:
- Shares of Adani-linked companies, including Adani Enterprises and Adani Green Energy, plummeted by 20% in two hours of trade on Thursday.
- Adani Green Energy also canceled plans to raise $600
R10,987.96 million in U.S. dollar bonds following the controversy.
Kenyan Energy Minister’s Defence
Energy Minister Opiyo Wandayi defended the initial contract award, asserting no evidence of corruption in Kenya’s dealings with Adani. However, the global scandal has heightened scrutiny, pushing Ruto to take a firm stance.
Regional and Global Implications
The cancellation underscores Kenya’s growing intolerance for corruption. Ruto’s actions may influence regional leaders to take stronger stances on governance and ethical business practices. Globally, the fallout for the Adani Group could dampen its expansion efforts and raise concerns among investors.
For Kenya, these decisive measures aim to maintain investor confidence and safeguard the country’s reputation in global markets.
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