President William Ruto has ordered the cancellation of the procurement process to expand the Jomo Kenyatta International Airport(JKIAt, which involved a proposal from India’s Adani Group.
Ruto also stated that he had directed the cancellation of the controversial KETRACO deal with Adani Energies Solutions signed by the energy ministry to construct power transmission lines.
Speaking during his State of the Nation address in Parliament on Thursday, November 21, the Head of State revealed that his directive was driven by credible evidence and undisputed information regarding corruption.
“I have stated in the past, and I reiterate today, that in the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” stated the Head of State.
”Accordingly, I now direct – in furtherance of the principles enshrined in Article 10 of the Constitution on transparency and accountability, and based on new information provided by our investigative agencies and partner nations – that the procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA Expansion Public Private Partnership transaction, as well as the recently concluded KETRACO transmission line Public Private Partnership contract, and immediately commence the process of onboarding alternative partners,” Ruto announced, drawing a standing ovation from Members of Parliament.
Energy CS Wandayi Submission in Parliament
The directive came hours after Energy and Petroleum Cabinet Secretary Opiyo Wandayi had stated that the controversial KETRACO deal with Adani Energies Solutions would proceed, despite the bribery charges the Indian firm is facing in the United States.
Wandayi emphasized that the government conducted thorough due diligence before moving forward with the deal.
Appearing before the Parliamentary Energy Committee, Wandayi explained that the government completed two phases of due diligence. This included a documentary review process where Adani demonstrated its technical, legal, and financial capacity to construct electricity transmission lines and substations.
“At the end of the day after two phases of the due diligence the contracting Authority :Kenya Electricity Transmission Company Limited (KETRACO) was of the view that the proponent, Adani passed the test following those two phases of dual diligence as provided in section 41 of the PPP Act,” he said.
Wandayi further assured that Adani showed it had the logistical capacity to implement the project. The deal will allow Adani to build and operate four transmission lines and two substations for 30 years before transferring them back to Kenya.
The Kes.96 billion deal between the Energy Ministry and Adani Energy Solutions was signed on October 12, 2024, despite public concerns over the company’s past operations in other countries.
“Therefore we are proceeding on the basis of the outcome of the very legalized dual diligence exercise that was undertaken by the contracting Authority in line with the law,” Wandayi stated.
