Kenya Cancels Adani Group Power Deal Amid US Bribery Charges

New Delhi: Kenyan President Willian Ruto has taken a strong stance on major projects involving the Adani Group. On Thursday, he announced the suspension of the procurement process for expanding Kenya’s main airport, which included a proposal from the Adani Group.

Ruto also revealed  the cancellation of a 736-million dollars, 30-year public-private partnership deal with an Adani Group unit for building power transmission lines, signalling a shift in the country’s approach to such agreements,  Reuters reported on Thursday.

Kenyan President William Ruto, in his state of the nation address, stated, "I have directed agencies within the ministry of transport and within the ministry of energy and petroleum to immediately cancel the ongoing procurement," citing "new information provided by investigative agencies and partner nations" as the reason for the decision.

Adani Energy Solutions, led by Gautam Adani had signed a 30-year, 736 million dollars public-private partnership deal with the Kenya Electrical Transmission Company in October. However, the agreement was suspended by a court later that same month.

On November 21, Kenya's energy minister clarified that there was no evidence of bribery or corruption in awarding a contract to a unit of the Adani Group for constructing power lines in the country. 

The Adani Group has responded to allegations against directors of Adani Green made by the US Department of Justice and the US Securities and Exchange Commission. In a release, a spokesperson stated, "The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied." The group also confirmed its intention to pursue "all possible legal recourse."