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Kenya drops airport deal with Adani Group after US indictments

The proposed deal, which aimed to expand Nairobi's Jomo Kenyatta International Airport, would have seen Adani add a second runway and upgrade the passenger terminal.

AdaniThe PSA was signed to supply renewable energy. (Gautam Adani/ X)

Kenyan President William Ruto announced on Thursday that he had ordered the cancellation of a procurement process to award control of the country’s main airport to India’s Adani Group, following the indictment of its founder in the United States.

The proposed deal, which aimed to expand Nairobi’s Jomo Kenyatta International Airport, would have seen Adani add a second runway and upgrade the passenger terminal.

Ruto stated in his State of the Nation address, “I have directed agencies within the Ministry of Transport and the Ministry of Energy and Petroleum to immediately cancel the ongoing procurement,” attributing the decision to “new information provided by investigative agencies and partner nations.”

An Adani Group firm signed a 30-year, $736-million public-private partnership agreement with the Energy Ministry last month to construct power transmission lines for a separate project.

On Thursday, Energy Minister Opiyo Wandayi clarified that there was no bribery or corruption involved in the awarding of the transmission lines contract.

Ruto’s announcement was met with applause from lawmakers present in parliament during his address. Representatives from the Adani Group did not immediately respond to a request for comment.

US authorities said on Wednesday that group founder Gautam Adani, one of the world’s richest people, and seven other defendants agreed to pay about $265 million in bribes to Indian government officials.

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The Adani Group denied the allegations and stated in a statement that it would pursue “all possible legal recourse.”

The airport proposal was made public in July, following its leak on social media four months after it was originally made.

In September, a Kenyan court temporarily blocked a proposed 30-year airport lease deal, which was set to facilitate the airport’s expansion.

(With inputs from Reuters)

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