Kenya Halts Major Airport Expansion Amid Adani Group Bribery Allegations

The Kenyan government has canceled the procurement process for expanding Jomo Kenyatta International Airport, impacting the Adani Group. This follows US legal actions against Gautam Adani for alleged bribery. President Ruto has ordered immediate termination of the airport expansion and other energy deals with the group, citing transparency concerns.

The Kenyan government announced the cancellation of the procurement process for the expansion of Jomo Kenyatta International Airport, a decision affecting the Adani Group. This development comes shortly after US prosecutors indicted Gautam Adani and others in connection with an alleged bribery scandal, reports Reuters.

During a joint session of parliament, Kenyan President William Ruto instructed procurement agencies within the transport and energy ministries to halt the ongoing processes for both the airport expansion and Kenya Electricity Transmission Company (KETRACO) projects. President Ruto cited constitutional mandates of transparency and accountability, as well as new information from investigative agencies.

The proposed deal to expand the Nairobi airport involved the Adani Group adding a second runway and upgrading the passenger terminal. In a separate agreement, the group had also inked a public-private partnership to construct power transmission lines. Energy Minister Opiyo Wandayi claimed no bribery was involved in awarding this contract.

Despite the legal challenges, the Adani Group has denied the bribery allegations made by the US Department of Justice and the Securities and Exchange Commission. The group's spokesperson affirmed their intention to seek all legal avenues to address the accusations.

In response to the unfolding events, Adani Green Energy has announced to defer its planned US dollar-denominated bond offerings, informing stock exchanges of the decision.

US legal authorities have charged Gautam Adani in a bribery case related to solar energy contracts. A criminal indictment detailing the charges was unsealed by the United States District Court for the Eastern District of New York, implicating prominent Indian executives in the alleged conspiracy.

(With inputs from agencies.)