Winning Bizness Desk

Mumbai. Kenya has terminated its agreements with the Adani Group, citing bribery and fraud allegations against the conglomerate and its leaders. The canceled projects, valued at Rs 21,422 crores, included a power transmission infrastructure deal and an airport expansion project. The decision follows accusations filed in the US, where eight individuals, including Adani Group chairman Gautam Adani, face charges of fraud and bribery involving billions of rupees. Kenyan President William Ruto emphasized the government's commitment to transparency, stating, “Our government operates on principles of honesty and integrity. We cannot approve agreements that compromise our nation’s image or interests.

Deals Worth Over Rs 21,000 Crores Scrapped

Among the canceled projects was a Rs 6,217 crore ($736 million) power transmission deal signed for a 30-year tenure. The agreement aimed to bolster Kenya's energy infrastructure. Additionally, the Adani Group had proposed a Rs 15,205 crore ($1.8 billion) international airport expansion project. Both deals, which held significant economic implications, have now been shelved.

Protests and Strikes Escalated Opposition

The Adani Group’s operations faced growing opposition in Kenya. Airport employees staged strikes, raising concerns about the group's involvement. Following these protests, President Ruto directed the Ministry of Transport and Ministry of Energy to halt all ongoing Adani projects. “This decision is based on new information provided by investigating agencies,” Ruto stated. Energy Minister Opiyo Wandeyi, addressing a parliamentary committee, clarified that no bribery or corruption was identified on Kenya’s part during the deal negotiations.

Allegations of Rs 2,200 Crore Bribery in the US

The allegations against Gautam Adani and others stem from a bribery scandal in the US. The United States Attorney’s Office claims Adani planned to offer a Rs 2,200 crore ($265 million) bribe to Indian officials to secure solar energy contracts. The case, involving Adani Green Energy Limited and another firm, was filed in the Federal Court of New York on October 24, 2024. An arrest warrant has reportedly been issued against Gautam Adani and his nephew Sagar Adani, among others.

Adani Group Denies Allegations

The Adani Group has rejected the allegations as unfounded. In a statement, the conglomerate said, “The accusations by the United States Department of Justice and the Securities and Exchange Commission are baseless. We categorically deny them.” The legal proceedings have garnered global attention, given the involvement of American investors in the solar energy project. Under US law, misusing such investments for bribery constitutes a serious offense.