Kenya Scraps $700M Deals with Adani Amid U.S. Scandal

New Delhi (The Uttam Hindu): On November 21, Kenyan President William Ruto stated that he had cancelled the procurement process to upgrade the main international airport in the country. The process had been based on a proposal from the Adani Group. The president also ordered the cancellation of a $700 million power transmission lines construction deal signed by the Ministry of Energy with an Adani Group subsidiary.

In his State of the Nation address, Ruto explained that the decision was based on "new information provided by investigative agencies and partner nations."In October, Adani Energy Solutions had entered into a 30-year, $736 million public-private partnership agreement with the Kenya Electrical Transmission Company, though a court had suspended the contract later that month.

Meanwhile, US prosecutors have charged Adani Group chairman Gautam Adani with taking part in a bribery scheme involving officials from India for $265 million. Adani Group has denied the allegations, describing them as "baseless".Energy Minister Opiyo Wandayi told a Senate committee there had been no case of corruption or bribery in relation to the PIP (Privately Initiated Proposal) with Adani Energy Solutions. Kenya's Energy Minister Opiyo Wandayi defended his country's deal with Adani, stating that neither corruption nor bribery had befell the power transmission agreement.

Prosecutors in the United States charged Gautam Adani, his nephew Sagar Adani, and six others with a string of frauds and briberies related to renewable energy projects in India. The projects allegedly accrued to the benefit of the Adani Group and of Azure Power, a NYSE-listed company until late 2023. Charges include claims of making false statements to investors and lenders while raising funds and presenting improper claims in how the company addressed anti-bribery practices.

The market value of the Adani Group companies saw a sharp slump of about $27 billion after bribery and fraud charges against it were announced on November 21. US authorities also found that Adani and other defendants had allegedly paid around $265 million in bribes to Indian officials for contracts that were expected to generate about $2 billion in profits over 20 years, including the development of India's largest solar power project.