Kenya breaks with Indian giant Adani: scandal, corruption and political about-face

Kenyan President William Ruto has announced the cancellation of major contracts with the Adani Group, following allegations of corruption and fraud brought against Indian tycoon Gautam Adani in the United States.

Ambitious projects marred by controversy

Adani Group was close to concluding a deal to upgrade Nairobi's Jomo Kenyatta International Airport, including building a new runway and terminal, in exchange for managing the airport for 30 years. The $1.85 billion project had sparked fierce criticism and protests in Kenya, including a strike by airport workers worried about job losses and worsening working conditions.

Adani had also been awarded a contract to build power transmission lines in Kenya. Energy Minister Opiyo Wandayi told a parliamentary committee that there was no corruption by Kenya in signing the deal.

Corruption allegations rock the Adani empire

US prosecutors recently charged Gautam Adani with defrauding investors in a solar power project in India by covering up an alleged bribery scheme involving $265 million in bribes to Indian officials. The allegations sent Adani Group’s stock price plummeting, with losses estimated at $27 billion.

Responding to the accusations, President Ruto said the decision to cancel the Adani contracts was based on “new information provided by our investigative agencies and partner countries.” While the United States was not specifically mentioned, it is clear that international developments influenced the decision.

Uncertain future for Kenya's infrastructure projects

The cancellation of these contracts raises questions about the future of infrastructure projects in Kenya. The country, facing economic challenges and growing development needs, will need to find new partners to deliver these critical projects. Increased vigilance against corruption and transparency in international agreements will be crucial to restoring public and investor confidence.