Adani Group’s challenges continue to mount as the Kenyan government has decided to terminate two major deals worth around USD 2.5 billion involving million power transmission line and a proposed airport. This development comes amid allegations of fraud and bribery involving Gautam Adani, India’s second-richest individual, and senior executives of the group.
Why Kenya scrapped the USD 2.5 billion Adani deal?
On November 21, Kenyan President William Ruto announced the cancellation of two agreements with Adani Group, collectively valued at over USD 2.5 billion. These deals involved infrastructure and energy projects and are likely to result in significant financial losses for the conglomerate.
- Airport expansion agreement: One of the canceled agreements, worth approximately USD 2 billion, involved plans to construct a second runway and upgrade the passenger terminal at Jomo Kenyatta International Airport. In return, Adani Group was set to secure a 30-year lease for operations.
- Energy project partnership: The second deal, valued at USD 736 million, was a public-private partnership between Adani Group and Kenya’s Ministry of Energy for power projects.
President Ruto cited new information from investigative agencies and international partners as the basis for his decision. During a public address, he directed the relevant government departments to terminate the procurement processes immediately.
Adani Group’s recent moves in Kenya
Earlier this month, on November 7, Adani Energy Solutions Global (a subsidiary of Adani Energy Solutions) established “Progressive Grid Networks” in Kenya to explore opportunities in power transmission projects. However, the cancellation of these high-value contracts may hinder the group’s expansion efforts in the region.
Allegations of bribery and fraud
Adding to Adani Group’s troubles, Gautam Adani and several senior executives are implicated in a bribery case in the United States. A federal indictment unsealed in Brooklyn alleges that between 2020 and 2024, Adani Group paid over USD 265 million in bribes to Indian government officials to secure lucrative solar energy contracts. These contracts were projected to generate more than USD 2 billion in after-tax profits over two decades.
The indictment also accuses Gautam Adani and his nephew, Sagar Adani, of personally meeting with government officials to advance the scheme. The U.S. Attorney’s Office has detailed these allegations as part of a broader investigation into the group’s activities.
Adani Group refutes allegations
Adani Group has rejected the allegations, calling them “unfounded” and affirmed its intent to explore all legal avenues to challenge them. The Adani Group emphasised its dedication to maintaining the highest levels of governance, transparency, and compliance with regulations in every region where it operates.
Meanwhile, S&P Global Ratings has revised the outlook of the company to “Negative” from “Positive” and reaffirmed the ratings at “BBB-“.
