National Treasury and Economic Planning Cabinet Secretary (CS) John Mbadi has come out in defense of Azimio leader Raila Odinga’s previous support for the controversial Adani Group. This comes in the wake of mounting scrutiny surrounding the Indian conglomerate’s involvement in large-scale infrastructure projects in Kenya.
Raila’s statement, made in mid-October, praised the Adani Group as a reputable and capable partner, especially in the realm of large infrastructure developments. In his remarks, Raila noted that Adani had demonstrated impressive project execution in various countries, including East Africa. “Adani is a credible partner. They have proven their capabilities in projects that surpass what we have seen in East Africa,” Raila said, reiterating the Indian conglomerate’s track record in building projects like airports in Mumbai.
Mbadi, defending Raila, explained that the Azimio leader’s comments were based on Adani’s past successes in regions outside Kenya. Mbadi, speaking in Nyando, Kisumu County on Saturday, emphasized that it would be difficult to accurately assess how Adani secured contracts in other countries, especially when those projects are situated far from Kenya. “I think what Raila said is that Adani has done some projects in some places that can be seen. Like in Mumbai, they have done an excellent airport. Whether they corrupted that one, we cannot know. Kwani sisi tunaishi India nijue kama amebribe watu huku ile ajenge airport?” he asked, suggesting that the ability to verify Adani’s dealings in India or other countries from Kenya is practically impossible.
Despite Mbadi’s defense of Raila’s initial comments, the situation has grown more complicated in light of recent revelations from international investigations. The United States government has opened investigations into Adani Group, leading to charges against the company’s founder, Gautam Adani, and several associates. These investigations have uncovered potential corruption and bribery allegations linked to Adani’s business dealings, which have cast doubt on the conglomerate’s practices.
Mbadi acknowledged the evolving situation, noting that while Kenya was still in the process of conducting due diligence on the Adani Group, the recent revelations from the US have caused the Kenyan government to reconsider its previous stance. “If the US government has done investigations and discovered there was bribery, the best action for any responsible government is to terminate any other dealings with such an entity,” Mbadi said, referencing the new information from investigative agencies that has prompted the government to reassess its partnerships with the group.
This shift in the government’s position culminated in a significant announcement by President William Ruto on Thursday. During his State of the Nation address, Ruto revealed that Kenya would be canceling two major deals with Adani Group: one involving the management of the Jomo Kenyatta International Airport (JKIA) and another with the Kenya Electricity Transmission Company (KETRACO). The decision was made after new information surfaced from both local and international sources, including ongoing investigations into the company’s operations.
The cancellation of these contracts marks a significant turn in Kenya’s relationship with Adani Group. While the Kenyan government had initially shown optimism about the potential benefits of working with the conglomerate, concerns regarding transparency and ethical business practices have now overshadowed these initial hopes.
Mbadi, however, stressed the importance of due diligence, reiterating that the government’s decision to halt these deals with Adani reflects a commitment to ensuring that Kenya’s partnerships align with the highest standards of integrity. “We were going through the process of validation and due diligence, and if someone does not disclose some materials and facts about themselves, how would you know they have bribed people elsewhere?” he asked, reflecting the growing caution surrounding the group.
As the situation unfolds, the Kenyan government is left grappling with how to handle its relationship with foreign companies, particularly those involved in large-scale projects. The Adani controversy highlights the delicate balance governments must strike between attracting foreign investment and ensuring the integrity of the deals they enter into. The coming weeks may see further scrutiny of Adani Group’s operations in Kenya, with Mbadi and other officials maintaining that any future engagements must undergo rigorous validation to protect Kenya’s interests.
