National Treasury CS John Mbadi has assured Kenyans that the cancellation of the Adani Group agreements will not result in losses to taxpayers. The only cost incurred will be the refund of the deposit paid by the Indian conglomerate.
Mbadi explained that the Privately Initiated Partnership (PPI) procurement structure allowed the government to halt the process without legal or financial repercussions since the deal was still under negotiation. “The beauty of PPI is that it can be stopped at any stage before the conclusion of negotiations,” he said.
This clarification counters claims from some leaders that the termination of the deals would lead to significant losses. The Law Society of Kenya (LSK) had demanded transparency on the costs involved, with its President Faith Odhiambo urging the government to disclose all expenses incurred during the deal’s pursuit.
The cancellation, ordered by President William Ruto, ended Adani’s proposed Sh238 billion takeover of Jomo Kenyatta International Airport and a Sh95 billion electricity transmission project with Ketraco. Both agreements would have granted the Indian firm management rights for 30 years.
Ruto’s decision, driven by public outcry and concerns over transparency, has received widespread praise. Movement for Democracy and Growth leader David Ochieng’ called for a more open and inclusive approach in identifying alternative strategies, emphasizing the need for public participation at every step.
