Following President William Ruto’s announcement of the cancellation of the Airport Expansion and Energy deals with the Adani group, there have been speculations on the impact this will have.
As such, Adani Energy Solutions on Saturday 23, responded, citing that Kenya’s cancellation of the Ksh106.72 billion transmission line project did not require it to make regulatory disclosure under Indian Stock Exchange rules as it was within its ordinary course of business.
It stated that it was addressing a request for clarification from the Bombay Stock Exchange and the National Stock Exchange, following a Reuters report that Kenya’s president had instructed the cancellation of the 30-year public-private partnership agreement.
According to a media report, the Adani company noted, “The Company, as a result of this, submits that there is no material impact of the Media Report on the Company’s operations.”
Also Read: Ruto Stops JKIA Adani Takeover
Events Preceding the Cancellation
Before the cancellation of the Adani deal, on Wednesday 20, U.S. authorities indicted Gautam Adani, the founder of the Adani Group, along with seven others, accusing them of bribing Indian officials with Ksh 38.43 billion the allegations the group has denied.
Moreover, in the deal with JKIA, the Adani group was to add a second runway. Additionally, the passenger terminal was to be upgraded in exchange for a 30-year lease.
Furthermore, in response to the above deal details Adani Energy Solutions reiterated as recorded in a media report that it was not involved in the deal to manage and upgrade Kenya’s Jomo Kenyatta airport.
“The Company nor any of its subsidiaries have entered into any contract in connection with any airport in Kenya,” the media report noted.
Also Read: Adani Group CFO Clarifies Deal That Led to Indictment in the US
President Ruto Orders Adani Cancellation
The Adani deal reached its end on Thursday 21 through State of the Nation address after constant uproar by the Kenyan population.
In his address, President Ruto ordered, “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.
“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 commence the process of onboarding alternative partners.”
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