Ruto cancels JKIA, Ketraco deals with Adani Group
President William Ruto has cancelled two multi-billion deals that Kenya made with Indian conglomerate Adani Group, including the modernisation of the Jomo Kenyatta International Airport (JKIA) as well as that it had already inked with Kenya Electrical Transmission Company to build and operate four transmission lines and two substations in the country.
One of the deals — one Sh96.68 billion build power transmission lines for the Kenya Electricity Transmission Company (Ketraco) —had already been signed, with Energy Cabinet Secretary telling Parliament Thursday morning that the deal would continue.
The other was in the works, a Sh230 billion proposal for a 30-year lease of the Jomo Kenyatta International Airport (JKIA).
“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. 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 on boarding alternative partners,” President Ruto told Parliament in his State of the Nation address on Thursday.
This directive comes barely a few hours after Mr Wandayi told Parliament that the Ketraco deal with Adani Energies Solutions, a subsidiary of the conglomerate, will go on despite fraud charges in the United States.
Mr Wandayi told the National Assembly Energy Committee that the government had conducted two phases of due diligence exercise on Adani including a documentary review process where the company demonstrated technical, legal and financial capacity for the construction of electricity transmission lines and substations.
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