Kenya President William Ruto has scrapped two deals linked to billionaire Gautam Adani. These deals include a $1.85 billion investment by the Adani Group in Kenya’s main airport with a 30-year operational contract and a $736 million public-private partnership agreement to build power transmission lines. The cancellations follow a U.S. federal court indictment accusing Adani, his nephew Sagar Adani, Vneet S. Jaain–CEO of Adani Green Energy–and five others for allegedly paying over $250 million to Indian officials to secure solar energy contracts expected to generate billions in profits over two decades.

The airport deal would include a new runway and an upgraded passenger terminal at Jomo Kenyatta International airport. This deal triggered a strike among the airport workers in September, as many feared it would result in job cuts and the employment of non-local workers.

"I have directed agencies within the ministry of transport and within the ministry of energy and petroleum to immediately cancel the ongoing procurement," Ruto said in his state of the nation address. Ruto’s speech was met with cheers and applause echoing in the parliament.

Ruto added that his government would now explore other potential partners for the airport and energy contracts.

However, the Adani Group has rejected the US Department of Justice and the SEC (Securities and Exchange Commission) allegations against Gautam Adani and his nephew Sagar Adani as ‘baseless,’ as per an official statement released by the company. “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” said an Adani Group’s spokesperson in an official statement.

Kenya’s High Court had previously halted a proposal of a 30-year lease agreement for the Adani group to manage the country’s main airport in exchange for expansion. Both the country’s main bar association and the Kenya Human Rights Commission (KHRC) argued in court that Kenya could independently secure the $1.85 billion amount needed to upgrade the airport.

Kenya President Ruto

Kenya President Ruto scraps airport, power transmission deals with Adani