Adani: Accused of corruption abroad, given a clean bill in Kenya

The dissension ensued after the Indian conglomerate proposed to modernise the Jomo Kenyatta International Airport (JKIA) and Kenya's power transmission sector through a Public-Private Partnerships (PPP) model. 

The public has criticised the opaque nature of these deals, questioning the lack of transparency on Adani's involvement in the country's infrastructure. 

In an attempt to save face, various leaders have come out to give the Indian firm a clean bill of health, saying that Adani has 'nothing to hide.'

Following the revelation by whistleblower Nelson Amenya who exposed the PPP deal, Prime CS Musalia Mudavadi published a full-page status report, assuring the public that the deal is yet in its early stages and no deal has been signed. 

In the report, Mudavadi pointed out that the State was reviewing Adani's proposal as the exchequer could not fund Ksh.260 billion needed for the upgrade. 

"For the avoidance of doubt, all terms and conditions of the proposed arrangement are subject to negotiations in accordance with the provisions of the PPP Act and no terms have been agreed upon as yet," Mudavadi said on July 30, 2024. 

His remarks coincided with President William Ruto who also defended the PPP deal during a town hall meeting in Mombasa. 

"I have seen people saying, William Ruto wants to sell the airport. Am I a madman? How do you sell a strategic national asset? You have to be insane?" the Head of State posed then.

Despite the leaders' voices, the public's disaffection towards Adani grew as days went by, with Kenyans wondering why the State did not opt for an open tender to allow a competitive bid. 

On September 5, 2024, Government Spokesperson Isaac Mwaura showered praises on the Adani firm, lauding its track record in India and noting that the upgrade would allow JKIA to conform to international standards. 

"We really need to change going forward and that is why we need a strategic partner bit I can say this without a fear of doubt that Adani has a very good track record in India and other places in investments," said Mwaura.

He opined that the country aims to welcome the private sector to finance the local infrastructure without burdening the taxpayer. 

"You'll be seeing more of these. We'll be getting more PPPs and PIPs so that then we have a way of refinancing our own development because the issue of borrowing is becoming a challenge," he added.

Former Prime Minister Raila Odinga also attempted to sanitise the firm; alleging that Adani's proposal to Kenya was made over a decade ago but has hindered by the absence of a legal framework for PPPs at the time. 

“Adani is a credible partner. They have proven their capabilities in projects that surpass what we have seen in East Africa," Raila said on October 13, 2024.

At the time, a United States investment research firm, Hindenburg Research accused Adani of financial fraud and stock market manipulation; allegations that the Indian firm denied. 

Further, reports surfaced of Adani cutting the power supply to Bangladesh for not paying Ksh.103 billion dues. In 2017, Bangladesh entered into a 25-year power purchase deal to buy electricity from the firm.

The news caused jitters over the Ksh.95 billion PPP Adani power deal that will develop Kenya's key transmission lines and substations across the country. 

With questions still surrounding the Indian firm, Transport CS Davis Chirchir recently came out to allege that Adani has not been involved in any acts of corruption following the due diligence conducted by the State. 

“Adani has not been barred by any country, has no history of corruption based on our due diligence, is solvent, and is tax compliant in all jurisdictions where it operates," Chirchir said in Parliament on November 14, 2024. 

"Its directors have not faced criminal convictions related to professional conduct within the last five years and have not been disqualified due to any administrative suspension or debarment proceedings."

Following the remarks, the leaders are left with egg on their faces after Gautam Adani, the chair of the Indian firm, was indicted in the US for allegedly paying over Ksh.30 billion in bribes to Indian government officials to obtain solar energy supply contracts.

According to the US Attorney's office, the contracts were expected to yield Ksh.259 billion profit. 

In response, the Adani Group has denied the bribery allegations and termed the charges as 'baseless.'