Kenya’s President William Ruto has canceled multimillion-dollar energy and airport expansion deals with Indian industrial conglomerate Adani Group shortly after Gautam Adani, founder and chairman of Adani, and other executives were indicted in New York on Wednesday for their alleged roles in a multi-million-dollar bribery and fraud scheme involving a major solar power project. In a state of the nation address, Ruto said the decision was made “based on new information provided by our investigative agencies and partner nations” but didn’t specify the United States. Last month, the Adani Group signed a$736-million public-private partnership deal with the energy ministry to construct power transmission lines. The giant conglomerate also signed an agreement to modernize Kenya’s main airport in the capital, Nairobi, in exchange for the group running the airport for 30 years.
Back in June, Ruto was forced to abandon Finance Bill 2024 containing controversial tax hikes, including a proposed fuel tax increase, after countrywide protests left dozens dead and saw parliament set ablaze. Among the controversial tax hikes was a proposal to increase the Road Maintenance Levy from KSh 18 to KSh 25 per liter on fuel, a move that would further hike already exorbitant fuel prices. Fuel prices in the country have hit record levels in recent years, with a liter of petrol currently averaging 193.84 shillings ($5.76 per gallon), nearly double the price five years ago.
Meanwhile, Adani’s indictment in the United States leaves his plans for the country hanging in the balance. Last week, Gautam Adani, said in a social media post on platform X on Wednesday that the company will invest $10 billion in energy and infrastructure projects in the United States. Adani has revealed that his company also aims to create up to 15,000 jobs in the country, but did not give the time period or details of the projects.
“Congratulations to @realDonaldTrump. As the partnership between India and the United States deepens, the Adani Group is committed to leveraging its global expertise and invest $10 billion in US energy security and resilient infrastructure projects, aiming to create up to 15,000 jobs,” Adani wrote on X.
By Alex Kimani for Oilprice.com
