“I now direct, in line with Article 10 of the Constitution, that the Ministry of Transport and the Ministry of Energy cancel the ongoing JKIA Public Private Partnership procurement process and the recently concluded Ketraco transmission line contract. These projects are critical, and we will immediately begin onboarding alternative partners.”-President William Ruto
President William Ruto, responding to mounting public pressure, announced the cancellation of two high-profile projects awarded to India-based conglomerate Adani Group. The projects, under the Public-Private Partnership (PPP) model, included a 30-year build-operate-transfer arrangement for the expansion of Jomo Kenyatta International Airport (JKIA) and the construction of high-voltage electricity transmission lines and substations. The contracts were valued at Ksh 238 billion and Ksh 95 billion, respectively.
Delivering his second State of the Nation Address to a joint session of Parliament, President Ruto cited credible corruption allegations as the basis for his decision. He emphasized his commitment to transparency and accountability, stating: “I now direct, in line with Article 10 of the Constitution, that the Ministry of Transport and the Ministry of Energy cancel the ongoing JKIA Public Private Partnership procurement process and the recently concluded Ketraco transmission line contract. These projects are critical, and we will immediately begin onboarding alternative partners.”
The announcement followed the indictment of Adani Group founder Gautam Adani in the United States on fraud charges involving US$2 billion. Prosecutors allege that Adani orchestrated a bribery scheme to secure contracts, raising funds on false anti-bribery claims.
Controversy and Reactions
Adani’s deals in Kenya have faced scrutiny for their opaque nature, with numerous court cases leading to suspensions. Energy Cabinet Secretary Opiyo Wandayi had earlier defended the Ketraco project, insisting it underwent due diligence. However, Ketraco Managing Director Dr John Mativo revealed that the transmission line project was still at the draft stage, requiring multiple approvals before finalization.
Adani, through its subsidiary Apiero, is also implicated in a separate Ksh 104 billion Social Health Authority (SHA) technology deal, which allegedly inflated costs by Ksh 96 billion.
International Implications
The cancellation is seen as a move to align with the incoming Donald Trump administration in the U.S., given America’s strict anti-corruption laws. U.S. companies have long raised concerns about losing contracts in Kenya due to widespread demands for kickbacks. President Ruto had initially defended the Adani deals as alternatives to expensive loans but reversed course following the public outcry and revelations of corruption.
This decision underscores the administration’s commitment to clean governance and transparency while signalling a cautious approach in its dealings with international contractors under scrutiny.
