Kenya’s President Ruto Cancels Major Adani Deals Amid U.S. Corruption Charges

By: staff writer

Kenya’s President William Ruto has canceled two major agreements with India’s Adani Group following corruption charges leveled against the company’s executives by U.S. prosecutors. The canceled deals include the expansion of Nairobi’s main airport and a multi-million-dollar project to construct power lines.

“These bribes were used to deceive investors and banks, raise billions of dollars, and obstruct justice,” stated Lisa Miller, Deputy Assistant Attorney General, as the U.S. Department of Justice (DOJ) revealed evidence including cellphone records, spreadsheets, and photos documenting bribe payments and concealment strategies.

The Adani Scandal Unveiled

The corruption charges accuse Adani executives of orchestrating a bribery scheme to mislead investors. The DOJ alleges Adani Green Energy Ltd. fraudulently raised $175 million, with U.S. investors as victims of the scheme. Additionally, the Securities and Exchange Commission (SEC) has filed parallel charges against Adani executives and Cyril Cabanes of Azure Power Global.

This isn’t Adani’s first controversy. In January 2023, Hindenburg Research accused the conglomerate of “brazen stock manipulation and accounting fraud.” While the accusations caused Adani’s net worth to plummet by $80 billion, his fortune currently stands at $85.5 billion, according to Bloomberg.

Fallout in Kenya

Adani’s operations in Kenya have been mired in controversy, with the company securing multi-billion-dollar contracts in energy and infrastructure. The latest scandal raises questions about the transparency of these agreements and the potential impact on Kenya’s development goals.

The now-canceled solar contracts were projected to generate over $2 billion in profits over 20 years. Investigators claim Adani personally met with Kenyan officials to secure these deals and allegedly engaged in elaborate efforts to conceal the bribery scheme.

A Broader Impact

Adani, often seen as a close ally of Indian Prime Minister Narendra Modi, has denied all allegations, dismissing the Hindenburg report as “nothing but a lie.” However, the U.S. charges intensify scrutiny on the conglomerate, which faces a growing list of legal and reputational challenges globally.

President Ruto’s decision underscores a commitment to combat corruption and ensure accountability in international partnerships, marking a pivotal moment in Kenya’s approach to foreign investment.

SOURCE: HORNDIPLOMAT AND CAPITALFM