President Ruto Bows to Public Pressure, Cancels Adani’s JKIA and KETRACO Deals

Nairobi, Kenya Nov 21 — President William Ruto has directed the immediate cancellation of all ongoing public-private partnership (PPP) discussions with the Indian conglomerate Adani Group Holdings, including the contentious Jomo Kenyatta International Airport (JKIA) expansion project and a recently finalized contract with the Kenya Electricity Transmission Company (KETRACO). While his decision has been praised as a bold move to safeguard national interests, critics argue it highlights deeper systemic issues of corruption and mismanagement in Kenya’s governance.

Speaking during his State of the Nation Address in Parliament on Thursday, November 21, President Ruto stated that the decision was informed by credible evidence of corruption provided by investigative agencies and international partners. His announcement came just hours after Adani Group directors were indicted in a U.S. federal court over allegations of a $250 million bribery scheme to secure lucrative government contracts in India.

Ruto’s directive to cancel the Adani Group’s contracts with Kenya is being interpreted as a strategic move to avoid a potential diplomatic fallout with the United States. By severing ties with Adani Group, Ruto appeared to be aligning with the international community’s anti-corruption stance, particularly given Kenya’s reliance on Western partnerships for trade, investment, and development support. Political analysts say that continuing the relationship with Adani Group after the indictment was likely going to strain relations with key U.S. institutions and international investors.

The President’s action also comes amid mounting domestic and global pressure for transparency and accountability in Kenya’s public-private partnerships. This decisive move signals an intent to address public concerns while maintaining Kenya’s credibility on the international stage. However, questions remain about how the government will handle other Adani-linked deals and whether this will set a precedent for similar cases in the future.

“I have stated in the past, and I reiterate today, that in the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” said President Ruto, earning applause from members of Parliament.

The President underscored that his directive aligned with the principles of transparency and accountability as enshrined in Article 10 of Kenya’s Constitution. Additionally, these agencies must promptly initiate the process of identifying and onboarding alternative partners to ensure these critical projects proceed without delay.

“Accordingly, I now direct – in furtherance of the principles enshrined in Article 10 of the Constitution on transparency and accountability, and based on new information provided by our investigative agencies and partner nations – that the procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA Expansion Public Private Partnership transaction, as well as the recently concluded KETRACO transmission line Public Private Partnership contract, and immediately commence the process of onboarding alternative partners,” Ruto announced.

The cancellation of the Adani contracts has garnered widespread applause in Parliament, with members rallying behind President Ruto’s decision. Many viewed it as a critical step toward restoring public confidence in Kenya’s governance. The move is also seen as a direct response to growing dissatisfaction with the government’s handling of controversial PPP agreements, especially those involving the Adani Group, which has faced global corruption allegations and intense public scrutiny.

Senator Ledama Olekina of Narok County lauded the president’s decision to cancel the Adani Group deals but noted the importance of addressing the structural flaws in PPP agreements.

“Today’s sitting of the Energy Committee focused on critical issues, especially concerns raised about the Adani Group,” Olekina said. “I’m pleased that the president has taken a bold step to cancel deals involving JKIA and the energy sector. This is a victory for accountability and transparency.”

Olekina emphasized that PPPs require rigorous public participation, full disclosure, and equity, highlighting the missteps in due diligence conducted by KETRACO. “Due diligence should be carried out by an independent body, not the procuring agency itself,” he said.

While the JKIA deal was still in its preliminary stages, the KETRACO contract raises greater concerns due to its advanced stage of implementation. “The KETRACO deal worries me because if a contract has been signed, unraveling it could prove complicated. Public funds cannot be tied to a company with questionable practices,” Olekina cautioned.

Ruto’s address, heavily focused on macroeconomic progress, painted an optimistic picture of Kenya’s development. However, opposition leaders and the public have expressed disillusionment, pointing out the stark contrast between the president’s portrayal and the realities faced by ordinary citizens. The State of the Nation Address in Kenya is expected to cover three key areas: a review of the government’s achievements in sectors like infrastructure, healthcare, and education; an acknowledgment of current challenges such as corruption, security, and the cost of living, with proposed solutions; and a roadmap for the future, outlining the government’s priorities and policies for the coming year. The address serves as a platform for the President to communicate progress, address public concerns, and announce new initiatives aimed at improving national development.

“The president speaks today as if he belongs to an alternative universe,” Senator Moses Kajwang of Homa Bay County said, adding that there was a disconnect between the President’s claims of thriving healthcare, education, and food security systems and the daily struggles of Kenyans grappling with hunger, broken infrastructure, and financial strain.

Opposition politicians accused the president of failing to address the root of these problems: corruption. They criticized the superficial treatment of the issue, particularly regarding public-private partnerships (PPPs). The Adani scandal, which some described as a symptom of broader systemic corruption, became a focal point of these frustrations.

“We need more than the cancellation of problematic contracts,” Senator Kajwang argued. “The president should introduce legislation to fast-track corruption cases, much like the six-month timeline set for election petitions. Only then will the fight against graft gain real momentum.”

“Two and a half years into the president’s term, we need leadership that is long on action and short on intentions,” he said, urging Ruto to follow through on his commitments to reform and transparency.

Ruto’s decision to terminate the Adani contracts comes after months of public outcry and protests organized by civil society under the banner “Occupy Parliament.” The protests, which were heavily policed and in some cases prohibited, highlighted concerns over transparency in the JKIA deal and fears of compromising national assets.

Others remained skeptical, calling for deeper investigations into other PPP deals involving foreign firms. “This is a serious wake-up call for our institutions. Due diligence and accountability must take center stage in all future projects,” commented an activist on X (formerly Twitter).

The timing of the announcement – less than 24 hours after U.S. prosecutors filed charges against Adani Group directors – highlights the far-reaching impact of the corruption scandal. The U.S. indictment accuses Adani executives of bribing Indian officials to secure inflated energy contracts, raising concerns about the company’s global business ethics.

The cancellation of Adani’s $737 million KETRACO contract is likely to send ripples through Kenya’s energy and infrastructure sectors. While the government has committed to onboarding alternative bidders, analysts warn of potential delays and financial implications as Kenya navigates the fallout.

Just hours after U.S. prosecutors announced the indictment of Adani Group directors, Kenya’s Energy Cabinet Secretary Opiyo Wandayi defended the government’s ongoing contractual agreements between Adani and KETRACO, insisting that the bribery charges against Adani in the U.S. carry no legal implications for the ongoing project in Kenya. Appearing before the Senate Committee on Finance on Thursday, November 21, Wandayi explained that comprehensive due diligence had been conducted before engaging the Adani Group. He highlighted a two-phase assessment carried out by the National Treasury and the Kenya Electricity Transmission Company to evaluate the conglomerate’s legal and operational suitability.

”On the matter of Adani’s indictment, under section 41 of the Private Public Partnership(PPP) Act, we have an elaborate mechanism for undertaking due diligence. The PPP Directorate domiciled under the Treasury in coordination with KETRACO conducted a due diligence exercise on Adani Energy Solution in two phases,’’ Wandayi stated. The CS further stated that after reviewing all the relevant documents, the government was satisfied that the Adani Group had fulfilled all its tax obligations in its home country, India.

In a strongly worded statement, Adani Group dismissed the corruption allegations, calling them “baseless and denied.” The conglomerate reaffirmed its commitment to governance and regulatory compliance across all jurisdictions.

“We assure our stakeholders, partners, and employees that we are a law-abiding organization, fully compliant with all laws,” the group stated.

With the Adani Group’s deals officially canceled, the government now faces the task of finding alternative partners for critical infrastructure projects. President Ruto’s decision is seen as a significant step toward restoring public confidence in Kenya’s governance and addressing widespread concerns about corruption and mismanagement.

“With determination for the future, let this serve as a clear notice: independent institutions tasked with these responsibilities must rise to the occasion, improve their performance, and meet the expectations of the Kenyan people,” Ruto said.

He reiterated that when faced with undeniable evidence or credible information regarding corruption, I will not hesitate to act decisively. Therefore, in line with the principles of transparency and accountability outlined in Article 10 of our Constitution, and based on new intelligence from investigative agencies and international partners, I now direct the following:

“For this reason, I remain fully committed to engaging with all stakeholders, including elected representatives, public officials, teachers, learners, healthcare workers, farmers, traders, artisans, and professionals across various sectors,” He said.

Ruto also said he was now paying attention to religious leaders, civil society members, industrialists, and entrepreneurs, among others. “Their voices guide my resolve to take affirmative, actionable steps toward national transformation,” he said.