President William Ruto has ordered the immediate cancellation of all deals between Kenya and the Adani Group, marking a significant shift in the country’s business landscape. The decision, announced during his State of the Nation address in the National Assembly, follows fresh revelations of serious financial misconduct involving Gautam Adani, the billionaire owner of the Indian conglomerate. The cancellation includes the high-profile agreements between the Adani Group and Kenya Electricity Transmission Company (KETRACO), as well as the planned acquisition of Jomo Kenyatta International Airport (JKIA).
In his address, Ruto emphasized the importance of transparency and accountability, referencing the guiding principles enshrined in Article 10 of Kenya’s Constitution. He revealed that investigative agencies, both within Kenya and from international partners, had uncovered new information that necessitated the immediate termination of the deals.
“I now direct, in furtherance of the principles enshrined in Article 10 of the Constitution on transparency and accountability and based on new information provided by investigative agencies and partner nations, that the procuring agencies within the Ministry of Transport and Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA PPP,” Ruto stated.
The cancellation of these deals comes in the wake of mounting controversy surrounding Adani’s business empire. Gautam Adani, one of India’s wealthiest men, has been accused of orchestrating a massive $250 million bribery scheme in the United States. This latest development adds to the growing concerns surrounding the Adani Group’s financial practices, which have already faced scrutiny following allegations of fraudulent activities dating back to 2023.
On Wednesday, news broke that Adani and several senior executives from the conglomerate were formally charged with fraud in the U.S. federal court. Prosecutors have accused the group of using false and misleading statements related to its anti-bribery practices to secure funding through loans and bonds, amounting to billions of dollars. The U.S. authorities also allege that the Adani Group had bribed Indian government officials to secure multi-billion-dollar contracts for its renewable energy sector, which was expected to generate more than $2 billion in profits over the next 20 years.
The criminal charges have only intensified the pressure on Adani, whose global business interests span across multiple sectors, including ports, airports, and renewable energy. In the indictment filed in New York, U.S. prosecutors claim that the bribery scheme involved coordinated efforts to influence Indian officials, which enabled the Adani Group to win lucrative contracts. This bribery operation was allegedly concealed to mislead investors and raise capital from international sources.
The accusations are a significant blow to the Adani Group, which has been operating under a cloud of suspicion since 2023. That year, a report from a prominent financial research firm accused the conglomerate of fraud, prompting a market sell-off that severely impacted its stock prices. Although Gautam Adani has denied the allegations, the charges brought forth by U.S. prosecutors now bring legal and reputational risks to the conglomerate on a global scale.
The Adani Group has yet to publicly respond to the fraud charges. However, the scale of the allegations and the legal proceedings that have followed could spell trouble for its future international ventures.
President Ruto’s decision to cancel the Adani deals is a clear signal that Kenya will not tolerate corruption or associations with companies embroiled in unethical business practices. The move also aligns with Kenya’s broader efforts to uphold the rule of law and protect its financial markets from undue influence.
Adani’s ties to Indian Prime Minister Narendra Modi have long been a subject of political debate. Critics have alleged that the billionaire’s business empire has flourished due to his close relationship with the Indian government. However, Adani has consistently denied these claims, asserting that his success is purely the result of business acumen.
With the cancellation of the Adani Group’s deals, President Ruto has reinforced Kenya’s commitment to fostering transparent and accountable business practices, ensuring that foreign investments align with the country’s legal and ethical standards.
