'We were still doing due diligence on JKIA': CS Mbadi on Ruto cancelling Adani deal

Speaking to the press outside Parliament, the CS explained that the Public Private Partnership (PPP) deals can be cancelled at any time during the procurement process. 

He added that the government was still in the negotiating stages with both the Ksh.260 billion deal for Jomo Kenyatta International Airport (JKIA) upgrade and the Ksh.95 billion power deal. 

"Let me make it clear that PPP is a very important process and is necessary and timely. However, there are processes to be followed when procuring," the CS said.

"The Adani deals have been through Privately-Initiated Proposals (PiP) and the beauty is that it can be stopped at any stage before negotiations are concluded."

According to Mbadi, the State found inconsistencies after conducting due diligence on Adani, with partnering agencies raising questions regarding the Indian conglomerate. 

"We were still at the procurement process and the negotiations had not began. For JKIA, we were doing due diligence. For me it is timely, it is stopped at a time when we don't have legal challenges," he noted.

"We have done due diligence as a government and the report from our partners is that there are lot of questions around the proposed procurement method."

Ruto's decision to cancel the Adani deals comes on the backdrop of allegations from the United States against Gaumet Adani, the firm's chairperson, who was accused of Ksh.30 billion bribery and fraud. 

The government had in the past faced difficulty to convince the public on the transparency of the Adani deals in the country.

In October, CS Mbadi noted that PPP deals would still be required to upgrade the airport, regardless of the private investor involved. 

"Rwanda has developed a serious airport, Ethiopia has an airport. Kenya cannot lag behind. We're losing our competitiveness as a hub," Mbadi remarked during the Kenya Bankers Association (KBA) exhibition in Nairobi. 

"Therefore whether it is Adani or not, we must agree that someone must do our airports. It is not just airports alone, major projects. Let us not shy away from engaging Kenyans," he added.