Addressing the nation, Kenyan President William Ruto announced the cancellation of all proposed agreements with the Indian company, Adani Group. These agreements comprised major projects such as power transmission and airport expansion. The Kenyan government has canceled the $700 million power transmission deal initially proposed with the Adani Group. This deal was aimed at establishing infrastructure for electricity transmission within the country. Alongside this, the Adani Group's $1.8 billion proposal for expanding an international airport has also been annulled.
President Ruto revealed that his government rescinded two significant proposed agreements with the Adani Group following accusations of bribery in the USA. He stated that he ordered the termination of the process that would have transferred control of Kenya's main international airport to the Adani Group.
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Moreover, the Ministry of Energy has annulled a 30-year public-private partnership deal signed with the Adani Group last month. This deal was intended to establish power transmission lines in Kenya.
Were Bribery Accusations the Catalyst?
Recent serious bribery charges in the USA against the Adani Group have prompted the Kenyan government to take this step. President Ruto mentioned that his government operates on principles of transparency and integrity and will not approve agreements that go against the nation's image and interests.
Read More: Adani's Project in India, Charges Involving Indian Officials; Why Did the Investigation Begin in the USA? Understand the Complete Scenario
President Ruto's Statement
In his speech, President Ruto said, "We will not accept any contract that goes against our nation's policies and values." It will be intriguing to observe the impact of this decision by the Kenyan government on the country's development plans. All eyes are now on the Adani Group's response and Kenya government's subsequent actions.
Connect: Adani Group's First Statement - 'Allegations in USA Are Unfounded, True Verdict Lies with the Courts'
In his address, President Ruto stated, 'I have directed agencies under the Ministry of Transport and the Ministry of Energy to immediately cease the processes of these projects. This decision is based on new information and inputs from investigative agencies.'
Allegations in the USA and Adani Group's Response
According to American officials, Gautam Adani and seven others are accused of offering $265 million (approximately 2,200 crore rupees) as bribes to Indian government officials. However, the Adani Group has denied these allegations, stating that it will resort to legal options. Previously, Kenya's Energy Minister Opiyo Wandayi asserted that there was no bribery or corruption involved in the transmission line project. This move by Kenya is considered a major setback for the Adani Group.
