Kenya’s President cancels major deals with Adani Group

Saturday, 23 November 2024 00:57 - - {{hitsCtrl.values.hits}}

President William Ruto

BBC: Kenya’s President William Ruto has cancelled two major deals involving Indian billionaire Gautam Adani, after the tycoon was indicted for fraud by US prosecutors.

In his state-of-the-nation address on Thursday, Ruto said the deals had been cancelled based on “new information provided by our investigative agencies and partner nations”.

The day before, Adani, India’s second-richest man, was charged with fraud by US prosecutors for allegedly orchestrating a $ 250 million (£ 198 m) bribery scheme and concealing it to raise money in the US.

Representatives from Adani Group have denied the allegations from US prosecutors and called them “baseless”.

“In the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” said Ruto in a speech met with loud cheers inside parliament.

The Adani Group was set to invest $ 1.85 billion in Kenya’s main airport in exchange for a contract to run it for 30 years, as well as a $ 736 million deal with the energy ministry to construct power lines.

Under the airport proposal, the upgrades would involve a new runway and an improved passenger terminal at the Jomo Kenyatta International Airport.

The deals with the Adani group were hugely unpopular in the country, and there were concerns of corruption.

The airport deal sparked a strike among airport workers in September, as many feared it would lead to job losses.

Energy Minister Opiyo Wandayi told a parliamentary committee on Thursday there was no bribery or corruption involved in the procurement of the power lines.

President Ruto has pledged to take action against corruption, following repeated allegations against his administration.

Ruto said his government would now start to look for alternative partners for the airport and energy deals.