Ruto Cancels Adani Group Deals Amid Corruption Allegations; Kalonzo Demands More Action
President William Ruto’s directive to cancel all deals involving the Indian-based Adani Group sparked applause and standing ovations during his State of the Nation address on Thursday. This marks his second address to Parliament since taking office in September 2022.
Citing new evidence linking the Adani conglomerate to corruption, Ruto instructed the ministries of Transport and Petroleum to immediately cancel all existing and proposed agreements with the company, including those concerning the takeover of JKIA and Ketraco.
“Honourable Members, I have stated in the past and now reiterate today that in the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” the President declared.
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Ruto emphasized that the directive aligns with the principles of transparency and accountability enshrined in Article 10 of the Constitution. He called for the ministries to initiate fresh procurement processes and onboard new partners for the projects.
Fraud Allegations Against Adani
The decision came hours after U.S. prosecutors charged Gautam Adani, the billionaire owner of the group, with fraud. The allegations include bribery of Indian officials to secure contracts projected to generate over $2 billion in profits over two decades. Adani has denied the charges, calling them “baseless” and vowing to appeal.
Kalonzo Urges Broader Action
Wiper Party leader Kalonzo Musyoka commended Ruto’s action but urged him to extend the cancellations to Adani Group’s involvement in the Social Health Authority (SHA) rollout.
“It is not enough to cancel the Adani Group deals in JKIA and Ketraco. Adani is also involved in SHA/SHIF. Ruto should also cancel this deal immediately,” Kalonzo stated on his X account.
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The SHA oversees the newly formed Social Health Insurance Fund (SHIF), which replaced the National Health Insurance Fund (NHIF) on October 1. The SHIF aims to raise Ksh 148 billion annually, with three consortiums, including Adani subsidiary Apeiro Limited, tasked with developing a healthcare IT system at a cost of Ksh 104 billion.
Legal and Political Implications
National Treasury CS John Mbadi clarified that none of the Adani Group deals had reached the final stages of procurement. He stated that the Public-Private Partnership Act of 2021 allows for cancellations without legal repercussions since the agreements were under Privately Initiated Proposals (PIPs).
“The negotiations had not even begun. For JKIA, we were still conducting due diligence. This decision is timely as it avoids legal complications while addressing concerns flagged by our partners,” Mbadi explained.
Kalonzo also announced plans to appear in court on November 27 to demand accountability for the JKIA deal and transparency in all Adani-related agreements.
The developments have triggered widespread debate among Kenyans, with many welcoming the President’s decision as a critical step toward tackling corruption and ensuring transparency in public-private partnerships.
