The government has alleviated concerns regarding potential financial repercussions following the annulment of all agreements with the Adani conglomerate, as directed by President William Ruto during Thursday’s State of the Nation Address.
Citizen TV has confirmed that the relevant ministries of energy and transport, along with the Directorate of Public-Private Partnerships located at the National Treasury, have initiated the process of termination.
The Directorate of Public-Private Partnerships, in collaboration with the Ministry of Energy led by Opiyo Wandayi, is currently reviewing the legal implications, costs, and withdrawal procedures related to the agreement with Adani Energy Solutions.
Officials from the government assert that the cancellation of the deal is unlikely to incur any costs.
“My team at the Directorate for Public-Private Partnerships will provide me with a summary following that meeting. For now, I prefer to keep it general, as we are in the termination phase. My final report will address any potential cost implications, which I believe should not exist,” stated John Mbadi, the Cabinet Secretary for National Treasury and Economic Planning.
The indictment of Adani in New York, United States, may have significantly influenced President Ruto’s decision to withdraw from a contentious agreement that many Kenyans claimed contravened the Public-Private Partnerships Law and was allegedly tainted by corruption.
The government contends that Adani’s bribery scheme and corrupt practices aimed at securing funds from investors for energy projects, including those in Kenya, along with fraudulent dealings, provide grounds for terminating the contract, which it argues does not constitute a binding agreement.
“The contract was established based on the representations made by Adani. If those representations were fabricated or false, then the contract is void. Contracts must be executed with integrity, which is a fundamental legal principle,” Mbadi remarked.
Recognizing the importance of public engagement, the National Treasury acknowledges that public input has been beneficial to the state and should be taken into account.
