Kenya Terminates Adani Group Agreements Amid US Bribery Allegations

Kenyan President William Ruto has annulled two high-profile agreements with the Adani Group following allegations of bribery involving the Indian conglomerate. The cancelled deals include a $736-million public-private partnership for constructing power transmission lines and a $2-billion project to upgrade Jomo Kenyatta International Airport, which also involved a 30-year lease arrangement.

Addressing the nation on Thursday, President Ruto said, "I have instructed the Ministry of Transport and the Ministry of Energy and Petroleum to terminate the ongoing procurement process immediately." He attributed the decision to new evidence provided by international investigative agencies and partner countries.

Details of the Cancelled Projects

The Adani Group had signed a 30-year agreement with Kenya Electrical Transmission Company in October to construct key power infrastructure. However, the agreement faced legal hurdles almost immediately, with a court suspending the contract in the same month.

Defending the initial decision, Kenya’s Energy Minister Opiyo Wandayi stated that the contract complied with the country’s laws. "The proposal from Adani Energy Solutions underwent rigorous due diligence as required by the Public-Private Partnership Act. We found no evidence of corruption or bribery during the review," Wandayi explained in a statement to the Senate finance committee.

The US Bribery Scandal

The Adani Group has been at the center of a global controversy following allegations by US authorities that Gautam Adani, his nephew Sagar Adani, and associates paid over $265 million in bribes to Indian officials. The scheme reportedly helped secure favorable terms for solar energy contracts, misleading international investors during a $750-million bond offering in 2021.

The indictment accuses Adani Green of falsely portraying its anti-corruption and compliance policies in investor materials. US authorities have charged Adani and others with securities fraud, wire fraud, and conspiracy to commit fraud.

Financial and Market Fallout

The allegations have triggered a significant market response. Gautam Adani’s personal wealth dropped by $10.5 billion, reducing his net worth to $59.3 billion, according to the Forbes Real-Time Billionaire Index. Shares of Adani Group companies, including Adani Enterprises, suffered massive losses on the Indian stock market, with several hitting their lower limits during trading.

In a statement, the Adani Group rejected the allegations, calling them “baseless.” It emphasized its commitment to governance and compliance, stating, "The Adani Group has always maintained the highest standards of transparency and regulatory compliance across all jurisdictions. We remain a law-abiding organization and will explore all possible legal remedies to address these allegations."

Global Repercussions

The termination of the Kenyan contracts highlights the international implications of the US bribery scandal. Governments and investors worldwide are closely monitoring developments as the Adani Group faces scrutiny over its governance practices.

With billions of dollars and its reputation at stake, the Adani Group is navigating one of the most challenging periods in its history, as investigations continue to unfold across multiple jurisdictions.