NAIROBI, Kenya – The Kenyan government has officially terminated a controversial Sh637 billion deal with Indian conglomerate Adani Group, following President William Ruto’s directive to halt the arrangement.
The deal, which faced mounting criticism over transparency concerns, included plans for the group to manage Jomo Kenyatta International Airport (JKIA) and key energy infrastructure for 30 years.
Treasury Cabinet Secretary John Mbadi confirmed the termination on Thursday while addressing the National Assembly’s Public Debt and Privatization Committee, chaired by Balambala MP Shurie Omar.
Mbadi assured lawmakers that the decision came directly from President Ruto, reflecting the administration’s commitment to protecting public interests.
“This communication (cancellation of the Adani deal) was from the highest level,” Mbadi told MPs. “The President made it clear during his address to Parliament. We should be confident that the directive is final.”
The scrapped agreements included a Sh238 billion plan for Adani to expand and manage operations at JKIA, Kenya’s largest airport.
Another Sh95 billion deal would have seen the company oversee the construction and management of electricity transmission lines under Kenya Electricity Transmission Company (Ketraco). Both contracts were initially intended to last three decades.
Following the President’s order, a team comprising officials from the Treasury, Ministry of Energy, and representatives from JKIA and Ketraco was formed to handle the cancellation.
According to Mbadi, the team convened within hours of Ruto’s announcement to assess the contractual and financial implications.
The deals have faced significant scrutiny, with critics accusing the government of bypassing public consultation and signing agreements in secrecy.
On the same day Mbadi confirmed the cancellations, the High Court ordered the government to provide evidence substantiating its claims about the termination.
Addressing fears of financial repercussions, Mbadi insisted that taxpayers would not bear any costs, as the contracts were still under negotiation and had not been finalized.
“There is no deal to terminate concerning JKIA because we were still in the negotiation process,” he clarified. “For Ketraco, a team is already handling the cancellation process, and we are confident there will be no costs incurred.”
Despite reassurances, questions remain over how the government will navigate potential legal challenges stemming from the abrupt cancellation.
Petitioners in the ongoing court case argue that the lack of public involvement and transparency in the agreements raised red flags from the outset.
The deal, which faced mounting criticism over transparency concerns, included plans for the group to manage Jomo Kenyatta International Airport (JKIA) and key energy infrastructure for 30 years.
Treasury Cabinet Secretary John Mbadi confirmed the termination on Thursday while addressing the National Assembly’s Public Debt and Privatization Committee, chaired by Balambala MP Shurie Omar.
Mbadi assured lawmakers that the decision came directly from President Ruto, reflecting the administration’s commitment to protecting public interests.
“This communication (cancellation of the Adani deal) was from the highest level,” Mbadi told MPs. “The President made it clear during his address to Parliament. We should be confident that the directive is final.”
The scrapped agreements included a Sh238 billion plan for Adani to expand and manage operations at JKIA, Kenya’s largest airport.
Another Sh95 billion deal would have seen the company oversee the construction and management of electricity transmission lines under Kenya Electricity Transmission Company (Ketraco). Both contracts were initially intended to last three decades.
Following the President’s order, a team comprising officials from the Treasury, Ministry of Energy, and representatives from JKIA and Ketraco was formed to handle the cancellation.
According to Mbadi, the team convened within hours of Ruto’s announcement to assess the contractual and financial implications.
The deals have faced significant scrutiny, with critics accusing the government of bypassing public consultation and signing agreements in secrecy.
On the same day Mbadi confirmed the cancellations, the High Court ordered the government to provide evidence substantiating its claims about the termination.
Addressing fears of financial repercussions, Mbadi insisted that taxpayers would not bear any costs, as the contracts were still under negotiation and had not been finalized.
“There is no deal to terminate concerning JKIA because we were still in the negotiation process,” he clarified. “For Ketraco, a team is already handling the cancellation process, and we are confident there will be no costs incurred.”
Despite reassurances, questions remain over how the government will navigate potential legal challenges stemming from the abrupt cancellation.
Petitioners in the ongoing court case argue that the lack of public involvement and transparency in the agreements raised red flags from the outset.
