In a bold move, Kenya's President William Ruto has annulled two major deals with the Adani Group after new allegations of fraud arose against its founder, Gautam Adani, as part of a broader commitment to combat corruption within the nation.
Kenya Withdraws Major Agreements with Adani Group Amid Fraud Allegations
Kenya Withdraws Major Agreements with Adani Group Amid Fraud Allegations
President William Ruto cancels significant investments by Adani Group following U.S. fraud indictment against Gautam Adani.
Kenya's President William Ruto has made headlines by cancelling two significant agreements with the Adani Group, led by Indian billionaire Gautam Adani. This decision comes in the wake of Adani being indicted for fraud by prosecutors in the United States, raising serious concerns about his business dealings. During Ruto's state-of-the-nation address, he cited "new information provided by our investigative agencies and partner nations" as the basis for his decision.
Just a day prior, Gautam Adani, recognized as India's second-wealthiest individual, faced charges from U.S. prosecutors alleging his involvement in a fraudulent $250 million bribery scheme designed to obtain funding in the U.S. The Adani Group has vigorously denied these allegations, asserting that they are unfounded and baseless.
Ruto's strong stance against corruption resonated with the parliamentary audience, who responded with enthusiastic approval when he stated, "In the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action." The Adani Group was in the process of investing $1.85 billion into a project aimed at upgrading Kenya's Jomo Kenyatta International Airport, which included a 30-year operational contract, alongside a $736 million agreement to build power lines.
Public sentiment regarding the Adani Group's involvement had been largely negative, often overshadowed by fears of corruption and job losses associated with the airport project, which led to strikes among airport workers in September. However, Energy Minister Opiyo Wandayi claimed in a parliamentary hearing that there had been no corruption in the procurement process related to the power project.
Under Ruto’s administration, there has been an ongoing commitment to tackle corruption, particularly in light of past allegations against his government. Ruto announced that his administration would now seek alternative partners for the contested airport and energy deals, signaling a shift towards more transparent investments in the future.
