The cancellation of the multi-billion-shilling Adani deals involving the Jomo Kenyatta International Airport (JKIA) and electricity transmission projects will not result in financial losses for Kenyan taxpayers, according to National Treasury Cabinet Secretary John Mbadi. The government will only refund the deposits made by the Indian conglomerates, as the agreements had not advanced to a stage that would warrant compensation or other financial liabilities.
Speaking on the matter, Mbadi emphasized that the procurement process under the Privately Initiated Partnership (PIP) framework allowed for termination without incurring significant financial risks. “The beauty with PPI is that it can be stopped at whatever stage before the negotiation is concluded. We were still at the procurement process,” he explained.
The government’s decision to cancel the Adani Group’s involvement stemmed from public outcry over the opaqueness and terms of the deal. “This was part of the due diligence, and we have done due diligence as a government. I don’t see the possibility of losing any money,” Mbadi reassured, further clarifying that the refund would be limited to the deposit amount since the termination was not mutual.
Adani’s Proposed Projects
The now-cancelled deals involved two major infrastructure projects. The first was a Sh238 billion contract for the renovation and management of JKIA, Kenya’s largest airport, for a period of 30 years. The second deal, worth Sh95 billion, was with Kenya Electricity Transmission Company (Ketraco) to build and manage electricity transmission lines for a similar duration.
Both projects were being spearheaded by Adani Energy Solutions, a Kenyan subsidiary of the Indian conglomerate Adani Group. However, public criticism over the lack of transparency and perceived unfavorable terms led to widespread opposition to the deals.
Ruto’s Bold Move Welcomed
President William Ruto’s decision to terminate the contracts was met with widespread approval across the political spectrum and among the public. Legislators gave the President a standing ovation for heeding public concerns, signaling unity on the matter. Movement for Democracy and Growth (MDG) party leader David Ochieng’ praised Ruto for prioritizing transparency and urged the government to ensure public involvement in future deals.
“The opaqueness of the Adani deal meant it was doomed to fail. Kenyans voiced their fears and demanded the discontinuation of the contract,” said Ochieng’. He further called for a transparent process to replace the scrapped agreements, stating, “The MDP party demands that any new process must inculcate the principle of transparency and incorporate the public at each and every step.”
Calls for Accountability
Despite the reassurances from CS Mbadi, the Law Society of Kenya (LSK) and other stakeholders have called for greater transparency regarding the costs associated with pursuing the Adani deals. LSK President Faith Odhiambo lauded the cancellation but insisted that the government disclose all expenses incurred.
“We welcome this presidential directive, which is in line with the will and best interests of the people of Kenya. However, the state should tell Kenyans how much the country spent when pursuing the deal,” Odhiambo remarked.
Safeguarding Public Interest
The cancellation marks a significant victory for Kenyans demanding accountability in public procurement processes. President Ruto’s directive aligns with the government’s stated commitment to ensure taxpayer funds are protected and that large-scale infrastructure projects benefit the public.
Moving forward, the government has pledged to adopt a more transparent approach in the procurement of similar projects. The focus will be on public participation, accountability, and value for money to rebuild trust in public-private partnerships.
The termination of the Adani deals highlights Kenya’s resolve to prioritize its citizens’ interests and sets a precedent for future engagement with international investors.
