President William Ruto has ordered the immediate cancellation of the procurement process of the JKIA-Adani expansion deal.
Speaking in Parliament on Thursday, November 21, Ruto also ordered the cancellation of the Kenya Electricity Transmission Company (KETRACO) deal that was announced a few months ago.
As explained by the Head of State, the new orders were informed by new information regarding the integrity of the Indian company.
“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," he directed.
"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.” he said.
The National Treasury had given the greenlight to Sh158 billion worth of power deals for KETRACO, under a Public-Private Partnership (PPP) with Adani Energy Solutions and Africa50.
Energy Cabinet Secretary Opiyo Wandayi highlighted that the government had greenlit a Ksh117 billion proposal from Adani to upgrade the transmission network but noted the state’s financial constraints necessitated private sector involvement.
Adani Energy Solutions, a subsidiary of the Indian Conglomerate Adani Group, project included the construction of a 206-kilometer 400kV transmission line and a 95-kilometer 220kV line.
The Ministry of Energy was set to host a public participation forum on Monday, September 16, to gauge public sentiment on the proposed private partnership with Adani Energy Solutions Limited.
The multinational corporation has been in talks with the government to take over Kenya’s electricity transmission network, a move that has stirred significant opposition among Kenyans.
Adani was supposed to manage electricity transmission across the country, replacing Kenya’s state-run transmission company, KETRACCO.
Adani had also committed to a Ksh238 billion investment to upgrade and expand JKIA. However, critics, including KHRC argue that Kenya could raise the necessary funds independently without giving up control of this critical national asset.
KHRC Executive Director Davis Malombe criticised the deal as “unaffordable,” highlighting potential job losses and significant fiscal risks to the public. The deal, he contended, offers no value for money to taxpayers.
The lease agreement stipulated that after 30 years, Adani would retain an 18 per cent equity stake in JKIA’s aeronautical business indefinitely. This would entitle the company to a concession fee starting at Sh6 billion, with a 10 per cent increase every five years.
KHRC argued that this arrangement violates Article 201(c) of the Constitution, which mandates that the benefits and burdens of resource use be shared equitably across generations.
Adani Enterprises recently set up a Kenyan subsidiary while raising its chances of taking over JKIA higher, despite intense opposition from aviation workers who went the extra mile of staging protests, demanding that the controversial deal be done away with.
The Kenyan subsidiary was set up by an Abu Dhabi group called Global Airports Operator, itself a subsidiary of Adani Enterprises, which was expected to own 100 percent of AIP's share capital.
As part of the incorporation of the Kenyan Subsidiary, Adani issued a share capital of Ksh6.75 million, consisting of 6,750 shares at Ksh1,000 each.