Adani Group Begins To Face Global Fallout As Kenya Terminates Airport And Power Deals After U.S. Indictment Charges

The Kenyan government on Thursday (21 November) cancelled its airport modernisation and energy agreements with India’s Adani Group, following allegations of a multi-billion-dollar bribery and fraud scheme involving the conglomerate's chairperson, Gautam Adani.

Kenyan President William Ruto announced the termination during a state of the nation address, citing “new information” provided by investigative agencies and international partners. While he did not explicitly name the United States, the decision comes hours after the U.S. Department of Justice indicted Gautam Adani, his nephew Sagar Adani, and senior executives of Adani Green Energy.

The now-scrapped airport project at Nairobi's Jomo Kenyatta International Airport (JKIA) involved Adani Group constructing an additional runway and terminal in exchange for managing the airport for 30 years. It was $1.85 billion deal between the Kenyan government and India’s Adani Airport Holdings Ltd.

The deal had been controversial, sparking protests and a strike by airport workers in September, who voiced concerns over potential job losses and deteriorating working conditions.

In his address, President Ruto affirmed his zero-tolerance policy on corruption. “In the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” he stated, reports Indian Express.

U.S. Indictment Details

The U.S. Justice Department alleges that Adani Green Energy executives offered or paid $265 million in bribes to Indian state government officials to secure solar power contracts. These contracts allegedly compelled state power distribution companies (discoms) in Odisha, Andhra Pradesh, Tamil Nadu, Chhattisgarh, and Jammu & Kashmir to purchase solar energy at inflated rates.

The Adani Group has denied the charges, describing them as “baseless” and affirming its compliance with all laws.