Adani Group, one of India’s largest and most powerful companies, has been making big moves in Africa. With a valuation of over $150 billion, the conglomerate has built a vast network across Asia and Africa, investing in infrastructure, energy, and real estate. However, in late November, this expansion hit a roadblock when Kenyan President William Ruto canceled contracts worth around $2.5 billion. These deals were crucial for Adani’s growth in Africa, and their sudden cancellation has sparked intrigue and speculation about what really happened.
What Happened in Kenya?
Adani Group has secured two major contracts in Kenya:
- A $736 Million Power Transmission Deal: Adani was set to partner with Kenya Electricity Transmission Company Limited (KETRACO) to build three high-voltage power transmission lines. This project, designed as a 30-year partnership, also included financing two power stations in Kisumu and Kajiado counties.
- A $1.85 Billion Airport Expansion: Adani planned to expand Nairobi’s Jomo Kenyatta International Airport (JKIA) by constructing a new terminal and a second runway. In return, the group would operate the airport for 30 years before handing it back to the Kenyan government.
However, both deals were scrapped. The first was suspended after the Law Society of Kenya raised concerns about public participation and constitutional violations, leading the High Court to rule against the agreement. The airport project, meanwhile, faced massive protests under the banner #OccupyJKIA, with accusations of a lack of transparency and fears of job losses for airport workers. Protesters even threatened a massive strike that could paralyze airport operations.
Why Were the Deals Canceled?
The cancellations followed allegations of bribery and fraud involving Adani Group. In the US, prosecutors accused Gautam Adani, the group’s founder and India’s second-richest man, of being involved in a multibillion-dollar bribery scheme back home in India. Though Adani Group denied the charges, these allegations have cast a shadow over its international dealings.
President Ruto explained that the decision to cancel the contracts stemmed from these bribery accusations and concerns over transparency. However, some speculate that there’s more to the story—and that global powers like the US and China might be influencing Kenya’s decisions.
The Bigger Picture: A Geopolitical Game?
Kenya’s relationship with the US has been growing stronger. Earlier this year, President Ruto visited Washington, where his government received praise for promoting democracy and regional stability. Kenya also plays a critical role in the US’s leading peacekeeping missions and addressing crises in Africa. Could the US have pressured Kenya to cancel Adani’s deals?
Meanwhile, China—another major player in Africa—has promised Kenya more financial support for development projects. President Ruto’s recent meeting with Chinese President Xi Jinping in September strengthened these ties. While there’s no evidence of direct Chinese involvement in Adani’s troubles, the rivalry between India, China, and the US in Africa raises questions about whether Kenya’s move was influenced by broader geopolitical strategies.
What’s Next for Adani in Africa?
Despite the setback in Kenya, Adani Group is unlikely to give up on Africa. The company has been eyeing other projects, including:
- A Container Terminal in Tanzania: Adani Ports and Special Economic Zone recently acquired a terminal in Dar es Salaam as part of a joint venture with Abu Dhabi Ports.
- Green Energy in Morocco: The group plans to invest in wind and solar projects to produce green hydrogen for the European market.
Gautam Adani has vowed to fight the allegations and continue his company’s global expansion. However, the loss of the Kenyan contracts will be a significant challenge, especially since President Ruto’s government needs external investment to finance its ambitious infrastructure plans.
Why This Matters
Kenya’s decision to cancel Adani’s contracts highlights the challenges of doing business in Africa, where public opinion, political pressure, and global rivalries can make or break major deals. It also underscores how Africa has become a battleground for global powers like the US, China, and India, each vying for influence in the continent’s rapidly growing economies.
For now, all eyes are on Adani Group as it navigates these challenges and decides its next move. Will it retreat or come back stronger? Only time will tell.
