Kenya cancels Adani Group's $2.5-billion deals in wake of U.S. indictment

Omokolade Ajayi -
Key Points
  • Kenya cancels $2.5-billion Adani contracts, including JKIA expansion and KETRACO power transmission line deals.
  • Decision follows bribery charges against Adani Group’s founder and executives in New York, sparking corruption concerns.
  • Despite the controversy, Adani Group continues global expansion in energy, ports, and infrastructure.

Kenya has officially canceled $2.5 billion worth of contracts awarded to the Adani Group, following the indictment of its founder, Gautam Adani, and several executives on bribery charges in the United States.

The announcement, made by Kenyan President William Ruto during his State of the Nation address, includes high-profile projects such as the expansion of Nairobi’s Jomo Kenyatta International Airport (JKIA) and a critical power transmission line deal with the Kenya Electricity Transmission Company (KETRACO).

This move comes in the wake of U.S. authorities accusing Adani and his associates of engaging in a $265 million bribery scheme, sparking renewed concerns about the integrity of the deals and transparency in Kenya’s infrastructure projects. 

The decision sparked widespread jubilation in the House, with both Senators and Members of Parliament chanting “Adani Must Go,” briefly interrupting the President's speech.

President Ruto orders contract revisions and partner shift

In his address, Ruto reaffirmed his commitment to anti-corruption efforts, stating, “Based on new evidence, I direct the ministries of transport and energy to cancel the JKIA and KETRACO PPP contracts and seek alternative partners.” The cancellation is the latest in a series of steps the Kenyan government has taken to address growing corruption concerns.

Ahead of the address, Kenya’s Energy Ministry defended the $736 million KETRACO deal, with Energy Cabinet Secretary Opiyo Wandayi addressing questions from lawmakers. Senators Olekina Ledama and Danson Mungatana questioned whether the U.S. charges against Gautam Adani would impact the agreement.

Wandayi clarified that the deal had passed due diligence, including checks on tax compliance and verification by Kenyan officials who visited India to review the process. "KETRACO found Adani to be compliant, unaware of the U.S. allegations now emerging," he said. "We are proceeding based on prior due diligence."

Amid recent setback

Adani Group, a diversified conglomerate spanning energy, ports, and infrastructure, remains a key player internationally, advancing its expansion strategy while navigating scrutiny at home and abroad.

Gautam Adani, India’s second-richest person with a net worth of $85.5 billion, continues to drive the Adani Group’s global growth despite mounting challenges.

In October, Adani Energy Solutions secured a $741 million deal with Kenya Electricity Transmission Co. (KETRACO) to develop and maintain power infrastructure in Kenya. 

However, a separate $1.85 billion agreement to lease JKIA to Adani Group for a 30-year period, in exchange for funding its expansion, was nullified by Kenya’s High Court in September, further complicating the group's ambitions in the region.