Another Hit to Adani Group Stock: Kenyan President Ruto Cancels Over $2.5 Billion Deals

On Thursday, November 21, 2024, Kenyan President William Ruto announced the cancellation of a procurement process that would have handed control of the country’s main airport, Jomo Kenyatta International Airport, to Adani Group. The decision follows the indictment of the company’s founder in the United States.

Airport Expansion Deal Under Scrutiny

The nearly $2 billion deal, which aimed to expand the airport by adding a second runway and upgrading the terminal, included a 30-year lease. However, the agreement is now void due to concerns surrounding the Adani Group’s legal troubles.

Cancellation of Energy Transmission Project

Ruto also revealed the termination of a separate $736 million public-private partnership between an Adani Group subsidiary and Kenya’s Ministry of Energy and Petroleum. This deal, signed last month, involved the construction of power transmission lines across the country.

Legal Challenges for Adani Group in the US

The cancellations come in light of a recent US court indictment of Gautam Adani, his nephew Sagar Adani, and other company officials. They face accusations of bribing Indian government officials to secure solar energy contracts. The charges allege that the group paid bribes exceeding ₹2,000 crore, with a significant portion allegedly given to a senior official in Andhra Pradesh.

Adani Group Denies Wrongdoing

In response, the Adani Group has strongly denied the allegations, calling them baseless and asserting that no wrongdoing occurred in their operations or dealings.

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