LSK Applauds Ruto’s Move To Cancel Adani Deals, Seeks Cost Disclosure

The Law Society of Kenya (LSK) has welcomed President William Ruto’s directive to terminate controversial deals involving the Adani Group, urging the government to disclose all costs and losses incurred from the cancellations.

On Thursday, President Ruto ordered the immediate termination of the Adani Group’s proposed takeover of Jomo Kenyatta International Airport (JKIA) and a Public-Private Partnership (PPP) deal with Kenya Electricity Transmission Company Limited (KETRACO), citing concerns over corruption.

Speaking during his State of the Nation Address, Ruto reaffirmed his administration’s commitment to fighting graft, emphasizing that credible evidence would always prompt decisive action.

“I have stated in the past, and I now reiterate, that in the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” he said.

Ruto instructed the Ministry of Transport and the Ministry of Energy and Petroleum to terminate the agreements, following new information provided by investigative agencies in partner countries.

Also Read: Ruto Cancels Adani JKIA Takeover And KETRACO Deal Amid Corruption Allegations

“This decision aligns with the principles of transparency and accountability enshrined in Article 10 of the Constitution,” he added. The president further directed the ministries to seek alternative firms for the projects.

LSK President Faith Odhiambo praised the move, describing it as a win for the Kenyan people.

“We welcome this presidential directive, which is in line with the will and best interests of the people of Kenya,” she said.

Odhiambo lauded public resilience in opposing what she described as a dangerous attempt to hand over national assets to untested entities.

“The president’s reevaluation of these agreements is a positive step toward constitutionally compliant governance,” she noted.

The LSK had filed legal proceedings on September 9 and October 23, 2024, challenging the PPP deals between Adani Group subsidiaries and Kenyan agencies, citing procedural and statutory violations.

The society highlighted irregularities in the procurement process, including alleged deviations from the mandatory requirements under the Public-Private Partnerships Act. The High Court later stayed further transactions related to the deals.

Public outcry further fueled concerns about the integrity, track record, and due diligence conducted on the Adani Group.

The society said they will push the case to conclusion.

“While we were prepared to prosecute both matters to conclusion, we acknowledge that a concession on the part of the Government on the overwhelming concerns around the two proposals is a more expeditious, reconciliatory and people-driven approach towards resolving the protracted impasse between the people of Kenya and their Government,” LSK president said.

Ruto’s decision to cancel the agreements affirmed these concerns, citing disclosures from partner states about irregularities.

The LSK has urged the government to disclose the financial losses arising from the cancellations.

“We call upon the government to make public all the costs and losses incurred and ensure appropriate measures are undertaken to minimize further losses to the country,” said Odhiambo.

She emphasized the importance of public involvement in decision-making and adherence to national values outlined in Article 10 of the Constitution.

“We call on all our agencies and Government Departments to place adequate consideration to the views and concerns of the public when undertaking their mandate which donated from and for the sake of the people. We equally encourage the members of the Public to remain vigilant in protecting the sovereignty of the Kenyan people and adherence to the national values and principles of Governance under Article 10 of the Constitution.”

The cancellations come amid fresh bribery allegations against Adani Group Chairman Gautam Adani in the United States. Adani and seven executives, including his nephew Sagar Adani, were indicted for allegedly orchestrating a multi-million-dollar bribery scheme to secure solar energy contracts.

U.S. prosecutors allege the group paid over $250 million in bribes to Indian government officials to secure contracts expected to generate $2 billion in profits. The allegations caused shares of Adani Group companies to drop by up to 20%, wiping out nearly $30 billion in market value.

The Adani Group has denied the accusations, calling them baseless. “We are a law-abiding organization committed to the highest standards of governance and compliance,” the company said in a statement.