Kenya has cancelled procurement processes worth over $2.5 billion with India’s Adani Group, following international investigations involving the company’s founder. President William Ruto announced the termination of both airport development and power transmission agreements during his state address, citing new investigative findings from partner nations.
The cancelled projects included a $2 billion airport development plan for Jomo Kenyatta International Airport, involving a second runway and terminal upgrades in exchange for a 30-year lease, and a $736 million power transmission construction agreement signed with the Energy Ministry.
The decision received strong parliamentary support amid previous public criticism over transparency concerns. The airport proposal, initiated in March through non-competitive procedures, faced legal challenges regarding value for money, leading to a temporary court block in September.
Despite earlier government defense of the deals following allegations of improper governance practices, recent US indictments involving alleged bribes to Indian officials prompted immediate action. Energy Ministry officials had defended the transmission contract’s integrity hours before the cancellation announcement.
Legal experts suggest potential arbitration challenges, particularly regarding the signed transmission agreement, though regulatory frameworks typically favor state decisions based on integrity concerns. The cancellations reflect increased scrutiny of international infrastructure agreements and their procurement processes. The development marks a significant shift in Kenya’s approach to major infrastructure partnerships.