Thu Nov 21 18:11:20 UTC 2024: ## Kenyan President Cancels Controversial Airport and Power Deals with Adani Group

**Nairobi, Kenya** – Kenyan President William Ruto has abruptly cancelled two major infrastructure deals with India’s Adani Group, citing concerns over transparency and value for money, and in light of a US indictment against Adani Group founder Gautam Adani. The announcement, made during Thursday’s state of the nation address, was met with enthusiastic applause from parliament.

The cancelled deals included a nearly $2 billion agreement to expand Jomo Kenyatta International Airport, which would have granted Adani Group a 30-year lease, and a separate $736 million public-private partnership to construct power transmission lines. Both projects had faced heavy criticism from the public and politicians over alleged lack of transparency and questionable financial benefits for Kenya.

President Ruto attributed the cancellation to “new information provided by investigative agencies and partner nations,” referencing the US indictment alleging bribery by Adani Group officials. While the Adani Group has denied the allegations and vowed to pursue legal recourse, the indictment seemingly provided the final impetus for the Kenyan government’s action.

The airport expansion plan, initially proposed in March, had bypassed standard competitive bidding procedures and only came to public attention in July via a social media leak. A Kenyan court had already temporarily blocked the deal in September following a lawsuit questioning its value. Similarly, the power transmission lines contract, signed last month, faced immediate scrutiny.

Energy Minister Opiyo Wandayi had defended the power deal earlier on Thursday, stating there was no evidence of corruption. However, legal experts like Kenyan lawyer George Kamau predict the Adani Group might challenge the cancellations through arbitration, particularly regarding the already-signed power transmission contract. Kamau acknowledged that any such legal battle would likely favor the Kenyan government given the basis for cancellation. The Adani Group has yet to publicly respond to the cancellations. The decision marks a significant shift for the Kenyan government, which had previously defended the deals despite earlier accusations of improper governance from US short-seller Hindenburg Research.

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