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Adani Deals for JKIA and KETRACO Termination Process Initiated

3D illustration of a contract termination agreement letter with a rubber stamp and the word terminated printed on the document.

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.

Robert Kibochi And Ex-MPs Gumbo, Mishra Appointed to State jobs

President William Ruto has named retired General Robert Kibochi, the former Chief of Defence Forces, as the new Chairperson of the Board of Directors for Mwai Kibaki Referral Hospital.

This appointment was revealed in a Gazette Notice issued on November 22, 2024.

Additionally, Nicholas Gumbo, a former MP for Rarieda, has been appointed as the Chairperson of the Board of Directors for the Kenya Sugar Board, while Swarup Mishra, the former MP for Kesses, will take on the role of Chairperson for the Board of Directors at the Kenya Biovax Institute Limited.

As stated in the Gazette Notice, all three appointees will serve for a term of three years, with their roles commencing immediately.

Bungoma: 88-Year-Old Man Dies in Tragic Bee Attack

An 88-year-old man has tragically lost his life after being attacked by bees in Bungoma County. The atmosphere in Nabing’enge village, situated in Milima Ward, turned somber following this unfortunate event.

According to local residents, including Patrick Wekesa, Alfred Muchele was assaulted by the bees and died early Friday morning while being treated at Naitiri Hospital.

The village elder reported that the incident occurred at the Nabing’enge market.

John Wekesa, the son of the deceased, has urged the government to step in and help the family with funeral costs.

Other community members, led by Pastor Isaac Mutali, expressed their grief, noting that they have lost a respected elder who played a significant role in the community’s development.

Lodwar: Police probe death of KCSE candidate

A file image of police line tape on crime scene

Authorities in Lodwar are looking into the circumstances surrounding the death of a candidate for the Kenya Certificate of Secondary Education (KCSE).

The student was discovered unresponsive at Talent Secondary School on the evening of November 19, 2024.

As per the police report, Kephas Achiro, a trauma and emergency nurse at Lodwar County Referral Hospital, received an urgent call from the school administration at 10:45 pm.

When medical personnel arrived at the location with an ambulance, they found the student, identified as John Ekalale Ewoyarot, foaming at the mouth and being aided by other students.

Despite medical efforts, the student was declared dead.

“The scene was examined, and appropriate measures were taken; no suicide note was located,” stated the police.

The body has been transferred to the morgue at Lodwar County and Referral Hospital, pending an autopsy report.

Treasury To Allocate Funds for Hardship Allowances for Judiciary

The High Court has mandated the Treasury to promptly disburse the approved hardship allowance to Judges and judicial officers stationed in challenging areas, effective from October 1, 2019.

This allowance is set at 40 percent of their basic salary.

Court documents reveal that the Treasury previously provided this allowance to judicial personnel assigned to regions like Turkana and Mandera, but it was suddenly discontinued.

In his ruling, Justice Chacha Mwita declared that the directive from the Salaries and Remuneration Commission (SRC) instructing the Treasury Cabinet Secretary to halt the allowance payments to Judges in designated hardship zones was unconstitutional, violating Article 160(4) of the Constitution.

Justice Mwita emphasized that judges have the right to have their remuneration and benefits protected from unfavorable changes.

He also ordered the Treasury Cabinet Secretary to ensure that payments are made to judges and judicial staff who were relocated from hardship areas without receiving their hardship allowance from October 2019 until their respective transfer dates.

The case was initiated in 2022 by Jonathan Munene Mwangi against the Treasury CS, SRC, and other involved parties after the allowance was terminated in 2019, despite its existence since January 2012.

Introduced in 2011 and included in the judiciary transfer policy, the allowance was implemented in 2012 but was withdrawn in 2019 without prior notice or justification to those affected.

During the proceedings, the SRC argued that the decision to cease the allowance was based on a study conducted in September 2014.

The Judge pointed out that the commission failed to clarify whether the judiciary was consulted during this study or if those receiving the allowance were informed about the intention to withdraw it.

Mwita ruled that the SRC could not eliminate the allowance without prior consultation with the judiciary, given its established presence since 2012.

The judge stated, “At that time, the allowance formed a component of the benefits provided to judges, judicial officers, and staff in those regions. This established a reasonable expectation that it would not be removed without their awareness and justification.”

The Attorney General, involved in the case, questioned the jurisdiction, arguing that the courts lacked the authority to address the issue.

However, Mwita asserted his jurisdiction, clarifying that there was no employer-employee relationship between the judges and the Attorney General, as they are not state employees but rather employees of the Judiciary.

Uncovering the Hidden Costs: LSK Urges Public Disclosure of Adani Deal Expenses

The Law Society of Kenya (LSK) has called for complete transparency regarding the expenses and losses associated with the contentious Adani agreements.

In a statement released on Thursday, LSK president Faith Odhiambo emphasized the importance of accountability and adherence to protocols to protect national assets.

“We urge the government to disclose all costs and losses incurred and to implement necessary measures to minimize the impact on the country,” Odhiambo stated.

This demand follows President William Ruto’s decisive action to call for the immediate termination of the Adani Group contracts.

These agreements, involving the Adani Group, the Kenya Airports Authority (KAA), and the Kenya Electricity Transmission Company (Ketraco), have faced significant public and legal scrutiny.

The LSK had previously contested these agreements through legal actions initiated on September 9, 2024, and October 23, 2024.

The society contended that the proposed Public-Private Partnerships (PPPs) with Adani Group subsidiaries posed a threat to Kenya’s sovereignty.

Odhiambo expressed support for the President’s decision to cancel the agreements.

She characterized the action as a reconciliatory and community-focused response to the public’s significant concerns.

“We appreciate this presidential directive, which aligns with the will and best interests of the Kenyan people,” she remarked.

“While we were ready to pursue both cases to their conclusion, we recognize that the government’s concession regarding the widespread concerns surrounding the two proposals represents a more efficient, reconciliatory, and community-driven method to resolve the ongoing conflict between the Kenyan populace and their government,” Odhiambo added.

She further urged the government to prioritize public interests in their decision-making processes.

Odhiambo called on Kenyans to stay alert in safeguarding the nation’s sovereignty and upholding constitutional principles as outlined in Article 10.

On Thursday, Ruto ordered the immediate cancellation of the planned Adani agreements.

Legal Battle Looms for Matiang’i in Multi-Billion IDP Cash Dispute

Former Interior Cabinet Secretary Fred Matiang’i has been summoned to appear in a case involving Internally Displaced Persons (IDPs) from Nyamira and Kisii counties, who are suing the government for Sh6.5 billion in compensation.

Matiang’i, along with former Interior Principal Secretary Karanja Kibicho and former Head of Public Service Joseph Kanyua, was named in the lawsuit filed in 2022 and has been instructed to submit their responses.

Originally lodged at the High Court in Nairobi, the case has now been moved to the High Court in Kisii, which is more accessible for the petitioners.

The lawsuit was initiated by Rev. Bishop Brethren Nemwel Momanyi, representing the IDPs from Kisii and Nyamira counties, with the clergyman acting as their patron.

The petitioners are demanding that Matiang’i and Kibicho account for the Sh6.5 billion allocated by President Uhuru Kenyatta’s administration in the 2017/18 national budget for the resettlement of IDPs.

They claim that the funds were misappropriated, lost to corruption, and allegedly disbursed to fictitious IDPs and boda boda riders.

The former CS and his Principal Secretary are being held accountable as the compensation funds fell under their jurisdiction.

On September 23, 2024, Justice Chacha Mwita of the High Court in Nairobi ordered that the respondents be notified in advance of their court appearance.

They are required to appear before Justice Teresia Odero at the High Court in Kisii.

Bid to have counties share burden of revenue shortfall rejected by MPs

The National Treasury has encountered a significant setback in its efforts to have both national and county governments share the financial burden resulting from a shortfall in nationally raised revenues.

The mediation committee of the Senate and the National Assembly, which resolved the deadlock regarding the allocation amounts for counties in the current fiscal year, has dismissed the Treasury’s proposal.

“We, as the mediation committee, have determined that counties will not bear the burden of the revenue shortfall,” stated Kiharu MP Ndindi Nyoro.

Nyoro, who co-chaired the committee alongside Mandera Senator Ali Roba, emphasized that since the National government, via the National Treasury, is responsible for revenue projections and budget drafting, it must absorb any resulting shortfall.

He noted that the national government possesses a greater capacity to manage such shortfalls compared to the devolved units.

This development follows the Treasury’s request to Parliament to reduce the allocation to devolved units by Sh20 billion from the initially planned Sh400 billion, a move prompted by the withdrawal of the Finance Bill, 2024.

The withdrawal, instigated by protests from Gen Z, resulted in a budget deficit of Sh345 billion. Consequently, the Treasury made substantial revisions to the national budget, decreasing it by Sh325 billion and cutting county allocations by Sh20 billion.

The Kiharu MP indicated that the national government has absorbed 93.6 percent of the austerity measures, while counties will only account for 6.4 percent.

Ultimately, the committee reduced the initial allocation to counties by Sh17 billion, bringing it down to Sh387 billion from Sh400.1 billion.

Nevertheless, lawmakers reiterated that in the future, the national government will be solely responsible for covering any shortfalls. In September, the Commission on Revenue Allocation had opposed the Treasury’s attempt to reduce county allocations due to revenue deficits.

Treasury Cabinet Secretary John Mbadi indicated that the nation is functioning within a constrained fiscal environment, attributed to a significant shortfall in ordinary revenue collection amounting to at least Sh316.7 billion in the preceding financial year. This situation has necessitated budget reductions at both tiers of government.

The Cabinet Secretary noted that from a total working budget of Sh2.63 trillion, debt servicing consumes Sh1.1 trillion, while non-discretionary expenditures, excluding salary payments, account for Sh190.4 billion. Additionally, Sh750 billion is allocated for monthly salaries and wages, leaving the Exchequer with a mere Sh531 billion.

Political Praise: MPs Cheer Rutos Decision to Scrap Adani Deals

Members of Parliament praised President William Ruto for deciding to cancel the controversial deals with the Indian company, Adani Group.

After the President gave his speech to Parliament about the state of the nation, he announced that he was cancelling the deals because many people in Kenya were upset about them. Lawmakers said that Ruto listened to the concerns of the people.

“We support the President, but a lot of Kenyans did not support Adani. So, we had a bit of a problem. But now, the President has listened to the people and cancelled the deals,” said Matungu MP Oscar Nabulindo.

The Adani deals made the government look bad because there were accusations of corruption and bribery against the company, according to Nabulindo.

“We are also happy because the President said he will look into the Social Health Authority and fix any problems,” said Garsen MP Ali Wario.

Wario said that the President’s decision to cancel the deals shows that he is serious about fighting corruption in the government and listening to the voices of the people.

“The President talked about corruption, which is important. Public participation is key, and I’m glad the President listened,” said Wario.

The President cancelled a $95 billion deal with Adani to build power lines and also stopped negotiations to upgrade Jomo Kenyatta International Airport.

“The Adani deal was a big issue. Adani has had a lot of bad publicity, especially with the recent bribery accusations in the US,” said Alego Usonga MP Samuel Atandi.

The National Assembly majority leader, Kimani Ichung’wah, said that the President’s speech showed that the government is on track to carry out its plans and programs.

“The country’s transformation is moving forward with strong determination and bold actions. Even though it has been a tough journey, we are making significant progress in stabilizing an economy that was in trouble just two years ago,” he explained.

Senator Karen Nyamu mentioned that the President canceled the deals to reassure the public.

“No matter how good a deal may seem, we need to make sure it is trustworthy. It was a smart move by the President,” she added.

Senator Esther Okenyuri thought the President’s speech was very inclusive.

“I hope we continue to listen to the people in the future because they are the most important,” she said.

MP Adan Keynan praised the President for ending deals that were suspicious from the start.

“These deals were not right, and the public was right to be upset. The President did the right thing by canceling them,” he concluded.

“He did a great job by focusing on Kenya and moving things forward. I just hope the people who started the Adani deals will get in trouble too,” he said.

Pumwani fire: At least 6 killed, scores injured

At least six individuals lost their lives in a fire that broke out on Tuesday night in Kitui Village, situated within the Majengo slums of Nairobi’s Pumwani area.

Reports indicate that 19 others were injured in the blaze.

The majority of the victims, predominantly men, were transported to local hospitals with varying levels of injuries, as emergency responders and police worked throughout the night to manage the situation and aid survivors.

The fire resulted in the destruction of over 50 homes, leaving numerous families displaced.

The cause of the fire remains undetermined, with Nairobi police chief Adamson Bungei confirming that an investigation is currently in progress.

“It is tragic to see so many lives lost in such an incident. All the deceased are men, and we are looking into this tragedy,” Bungei remarked.

The Kenya Red Cross reported that they treated at least 16 individuals for minor injuries, while search efforts for missing persons continued late into the night.

Emergency services, including the Nairobi City County Fire Department, worked in conjunction with community members to extinguish the fire, which took several hours to bring under control.

“Alongside the Nairobi City County Fire Department and local residents, we have successfully contained the fire incident in Kitui Village, Majengo, Nairobi. The Kenya Red Cross is on-site, assisting in the search for missing individuals,” the organization stated on Twitter.

This disaster has left many families in distress, with survivors urgently seeking assistance to rebuild their lives after losing their homes and possessions in the fire.

Emergency responders and authorities are encouraging anyone with information regarding the fire’s cause to come forward as investigations continue.

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