NAIROBI, Kenya — Kenya’s National Treasury Cabinet Secretary, John Mbadi, has assured the public that the cancellation of two controversial multi-billion-shilling deals with India’s Adani Group will not result in any losses to taxpayers.
Mbadi clarified that only the deposit made by the Indian conglomerate will be refunded, with no additional costs incurred by the government.
The halted deals, involving the Jomo Kenyatta International Airport (JKIA) and electricity transmission lines, had faced significant public backlash over alleged lack of transparency.
According to Mbadi, the agreements were terminated under Kenya’s Privately Initiated Partnership (PIP) framework, which allows procurement processes to be stopped at any stage before final negotiations.
“The beauty of the PIP framework is that it can be stopped at any stage. We were still in the procurement phase and had not reached a legally binding agreement,” Mbadi said. “The only amount being refunded is the deposit they paid, as this was not a mutual termination.”
The assurance follows demands by the Law Society of Kenya (LSK) for the government to disclose the full financial implications of canceling the Adani deals.
LSK President Faith Odhiambo welcomed the move but called for transparency on costs incurred during the procurement process.
“This presidential directive aligns with the will of the people. However, the government must disclose how much was spent while pursuing these deals,” Odhiambo stated, emphasizing the importance of public trust.
President William Ruto’s administration terminated two major contracts involving Adani Group subsidiaries.
The first deal, worth KSh238 billion, would have seen Adani take over the renovation and management of JKIA for 30 years.
The second, a KSh95 billion contract with the Kenya Electricity Transmission Company (KETRACO), involved constructing and managing power transmission lines.
The cancellations were widely applauded by legislators and civil society, who cited concerns over the lack of transparency.
Parliamentarians gave Ruto a standing ovation, commending his decision to heed public outcry.
David Ochieng’, leader of the Movement for Democracy and Growth party, praised the move, emphasizing the need for greater transparency in future deals.
“The opaqueness of the Adani agreements doomed them from the start. Any new process must uphold transparency and involve public participation at every step,” Ochieng’ said.
The government has yet to outline its strategy for replacing the canceled agreements.
However, Mbadi’s assurance has quelled fears of financial losses, signaling a commitment to responsible governance.
Mbadi clarified that only the deposit made by the Indian conglomerate will be refunded, with no additional costs incurred by the government.
The halted deals, involving the Jomo Kenyatta International Airport (JKIA) and electricity transmission lines, had faced significant public backlash over alleged lack of transparency.
According to Mbadi, the agreements were terminated under Kenya’s Privately Initiated Partnership (PIP) framework, which allows procurement processes to be stopped at any stage before final negotiations.
“The beauty of the PIP framework is that it can be stopped at any stage. We were still in the procurement phase and had not reached a legally binding agreement,” Mbadi said. “The only amount being refunded is the deposit they paid, as this was not a mutual termination.”
The assurance follows demands by the Law Society of Kenya (LSK) for the government to disclose the full financial implications of canceling the Adani deals.
LSK President Faith Odhiambo welcomed the move but called for transparency on costs incurred during the procurement process.
“This presidential directive aligns with the will of the people. However, the government must disclose how much was spent while pursuing these deals,” Odhiambo stated, emphasizing the importance of public trust.
President William Ruto’s administration terminated two major contracts involving Adani Group subsidiaries.
The first deal, worth KSh238 billion, would have seen Adani take over the renovation and management of JKIA for 30 years.
The second, a KSh95 billion contract with the Kenya Electricity Transmission Company (KETRACO), involved constructing and managing power transmission lines.
The cancellations were widely applauded by legislators and civil society, who cited concerns over the lack of transparency.
Parliamentarians gave Ruto a standing ovation, commending his decision to heed public outcry.
David Ochieng’, leader of the Movement for Democracy and Growth party, praised the move, emphasizing the need for greater transparency in future deals.
“The opaqueness of the Adani agreements doomed them from the start. Any new process must uphold transparency and involve public participation at every step,” Ochieng’ said.
The government has yet to outline its strategy for replacing the canceled agreements.
However, Mbadi’s assurance has quelled fears of financial losses, signaling a commitment to responsible governance.
