Ruto cancels multimillion-dollar deals with Adani Group

By Zuleikha Salim

In a decisive move, President William Samoei Ruto has announced the cancellation of multimillion-dollar agreements with India’s Adani Group, which involved the modernization of Jomo Kenyatta International Airport (JKIA) and major energy projects under KETRACO.

Speaking during his State of the Nation Address on November 21, 2024, the president emphasised that the decision was based on credible evidence from relevant agencies, which made it impossible for the deals to continue.

Highlighting the importance of listening and learning in leadership, President Ruto reiterated his commitment to engaging with officials across all sectors to ensure informed decisions.

“Based on new information provided by investigative agencies and partner nations, that the procurement agencies within the ministry of Transport and Energy and Petroleum to immediately cancel the ongoing procurement process for the JKIA expansion Public Private Partnership transaction as well as the recently concluded KETRACO transition Public Private Partnership and immediately commence the process of onboarding alternative partners, because these are important projects,” said.

He also underscored that the responsibility of advancing the nation is a collective effort, valuing the contributions of all citizens, whether through support or encouragement.

The move signals a shift towards prioritising local development strategies, raising questions about the future of these projects and their impact on Kenya’s relationship with international investors.

In October, Adani Group signed a Sh95.7 million deal with the Kenya Electricity Transmission Company Limited.

The Indian firm was to operate and maintain transmission lines and substations for 30 years, in efforts to address persistent power blackouts across Kenya.

Adani Group was also in the running for the Sh30 billion for the JKIA upgrade deal.

The President’s move came hours after the United States government charged Gautam Adani, chairman of the Adani Group for allegedly paying Sh30 billion in bribes to the Indian government to obtain solar energy supply contracts.