Kenya Egg-Faced Following Adani’s Corruption Indictment In US
Since entering the Kenyan market with proposed transactions in the energy and aviation sectors, Adani Group has caused a great deal of criticism.
The disagreement arose after an Indian conglomerate proposed using a Public-Private Partnerships (PPP) model to modernize Kenya’s power transmission sector and Jomo Kenyatta International Airport (JKIA).
The public has criticized the opaque nature of these transactions, questioning Adani’s role in the country’s infrastructure.
In order to preserve face, several leaders have stepped out to offer the Indian firm a clean bill of health, claiming that Adani has ‘nothing to hide.’
Following the discovery by whistleblower Nelson Amenya that disclosed the PPP deal, Prime Minister CS Musalia Mudavadi issued a full-page status report, assuring the public that the project is still in its early stages and that no agreement has been signed.
In the article, Mudavadi stated that the State was examining Adani’s proposal because the exchequer could not afford the Ksh.260 billion needed for the improvement.
“For the avoidance of doubt, all terms and conditions of the proposed arrangement are subject to negotiations in accordance with the provisions of the PPP Act and no terms have been agreed upon as yet,” Mudavadi said on July 30, 2024.
His views coincided with those of President William Ruto, who backed the PPP accord during a town hall gathering in Mombasa.
“Adani is a company of good repute…”
— Citizen TV Kenya (@citizentvkenya) November 21, 2024
The day President Ruto, Raila Odinga and CS Davis Chirchir defended Adani Group over controversial Ketraco and JKIA deals pic.twitter.com/c1DhALGLnE
“I have seen people saying, William Ruto wants to sell the airport. Am I a madman? How do you sell a strategic national asset? You have to be insane?” the Head of State posed then.
Despite the leaders’ comments, public dissatisfaction with Adani intensified over time, with Kenyans questioning why the state did not hold an open procurement to enable for a competitive offer.
On September 5, 2024, Government Spokesperson Isaac Mwaura praised the Adani firm’s track record in India and stated that the improvement would allow JKIA to meet international standards.
“We really need to change going forward and that is why we need a strategic partner bit I can say this without a fear of doubt that Adani has a very good track record in India and other places in investments,” said Mwaura.
He stated that the country intends to allow the private sector to finance local projects without burdening taxpayers.
Former Prime Minister Raila Odinga also attempted to clean up the firm, claiming that Adani’s proposal to Kenya was made more than a decade ago but was hampered by the lack of a legal framework for PPPs at the time.
“Adani is a credible partner. They have proven their capabilities in projects that surpass what we have seen in East Africa,” Raila said on October 13, 2024.
At the time, Hindenburg Research, a US investment research firm, accused Adani of financial fraud and stock market manipulation, which the Indian corporation rejected.
Adani indicted by the US Attorney!
— Eric Muriuki (@Benign_Overlord) November 21, 2024
But CS Davis Chirchir was telling the country how Adani is clean and has never engaged in any illegalities?? pic.twitter.com/qImeWcDSQ1
Furthermore, reports circulated that Adani has cut off power to Bangladesh for failing to pay Ksh.103 billion in dues. In 2017, Bangladesh signed a 25-year power purchase agreement with the company.
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The disclosure sparked concerns about the Ksh.95 billion PPP Adani power project, which will develop Kenya’s main transmission lines and substations around the country.
With questions remaining surrounding the Indian firm, Transport CS Davis Chirchir recently said that Adani was not implicated in any acts of corruption following the State’s due diligence.
“Adani has not been barred by any country, has no history of corruption based on our due diligence, is solvent, and is tax compliant in all jurisdictions where it operates,” Chirchir said in Parliament on November 14, 2024.
Following the remarks, the leaders are left with egg on their faces, since Gautam Adani, the chair of the Indian corporation, was indicted in the US for allegedly paying over Ksh.30 billion in bribes to the Indian government.
Kenya Egg-Faced Following Adani’s Corruption Indictment In US
