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In a landmark announcement during his State of the Nation address on November 21, 2024, President William Ruto ordered the immediate cancellation of the planned takeover of Jomo Kenyatta International Airport (JKIA) by the Adani Group. The President also directed the termination of a controversial Sh96 billion deal between Adani Energy Solutions Limited and the Kenya Electricity Transmission Company Limited (Ketraco).
The decision follows new evidence unearthed by Kenyan investigative agencies and information from partner states, linking the Indian conglomerate to allegations of corruption. These findings added weight to longstanding public opposition to the deals, which critics argued lacked transparency and accountability.
Key Highlights from the Address
- Decisive Action Against Corruption: President Ruto reaffirmed his commitment to fight graft, citing Article 10 of Kenya’s Constitution, which emphasizes transparency and accountability.
- “In the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” he declared.
- Immediate Cancellation of Adani Takeover: The President directed the Ministry of Transport and the Ministry of Energy and Petroleum to:
- Terminate the public-private partnership (PPP) agreement for JKIA’s expansion.
- Halt the implementation of the Adani-Ketraco transmission line deal.
- New Partners for Critical Projects: President Ruto stressed the importance of these infrastructure projects but emphasized the need for partners who align with Kenya’s constitutional values.
- “I now direct… that the procuring agencies immediately begin the process of onboarding new partners because these are important projects,” he added.
- Applause from Parliament: Members of both the Senate and National Assembly greeted the directive with cheers, reflecting widespread relief and support for the cancellation.
Context Behind the Cancellation
The JKIA Takeover Deal:
- The deal involved the Adani Group taking over operations at Kenya’s busiest airport for 30 years in exchange for Sh238 billion.
- Public outrage grew as reports indicated the deal was shrouded in secrecy and lacked adherence to principles of integrity.
The Ketraco Transmission Deal:
- Signed on October 11, 2024, the deal entrusted Adani Energy Solutions Limited with managing critical transmission lines and substations for 30 years.
- On October 25, the High Court in Nairobi issued conservatory orders halting the deal, following a petition by the Law Society of Kenya (LSK).
- The LSK argued the deal was a “constitutional sham” and violated principles of public participation and accountability.
Adani Group’s Global Controversies
The Kenyan decision comes amid escalating legal troubles for the Adani Group globally.
- On November 20, 2024, the group’s billionaire founder, Gautam Adani, was charged with fraud in New York.
- Prosecutors alleged that Adani executives bribed Indian officials to secure renewable energy contracts worth over $2 billion in profits.
The Adani Group has denied the allegations, terming them baseless and promising to pursue legal recourse. However, the revelations have cast a shadow over the conglomerate’s international dealings, including those in Kenya.
Public Reaction
The cancellation has been met with widespread approval from Kenyans who had been vocal in opposing both deals. Civil society groups, legal professionals, and ordinary citizens took to social media to laud the President’s decisive stance.
- Kenya Association of Taxpayers: “A win for transparency! Public resources must serve the people, not shadowy deals.”
- Law Society of Kenya: “The cancellation is a testament to the power of public participation and judicial oversight.”
Next Steps
- New Procurement Process: The Ministry of Transport and the Ministry of Energy have been tasked with identifying new partners to ensure continuity of these vital infrastructure projects.
- Heightened Oversight: This incident underscores the need for stricter oversight mechanisms in Kenya’s public-private partnerships to avoid future controversies.
- Public Involvement: Experts have urged the government to enhance public participation and stakeholder engagement in large-scale projects.
Conclusion
President William Ruto’s announcement to cancel the JKIA and Ketraco deals marks a significant moment in Kenya’s fight against corruption. By prioritizing transparency and accountability, the President has set a strong precedent, signaling that Kenya will not tolerate graft in its critical infrastructure projects. As the government begins the search for new, credible partners, all eyes will be on the ministries involved to ensure adherence to these values.