CS Mbadi Explains Why Adani Won’t Get Compensation After Ruto’s Decision
Treasury Cabinet Secretary John Mbadi has confirmed that the government will not compensate Adani Group following President William Ruto’s decision to cancel controversial deals with the Indian conglomerate.
Speaking outside Parliament after the President’s State of the Nation address on Thursday, November 21, Mbadi reassured Kenyans that the termination of the agreement was within legal bounds, given its classification as a Privately Initiated Partnership (PIP).
He clarified that PIPs are designed to be flexible, allowing cancellation at any stage without substantial financial repercussions.
“I don’t see the possibility of losing any money, compensating them for doing what? The only thing is the amount they paid, which will be refunded because it is not a mutual termination,” Mbadi stated.
He further emphasized that unlike traditional procurement methods, the PIP format incurs minimal expenses and allows the government to conduct due diligence before committing to long-term agreements.
“In PIP, there are not many expenses involved, so what would you compensate them for? I do not see any problem. PIP is the most flexible method of procurement,” he explained.
The cancellation targeted two significant deals: a concessional agreement for the expansion of Jomo Kenyatta International Airport (JKIA) and a contract for constructing Kenya’s power transmission lines.
President Ruto announced the termination during his State of the Nation address, citing credible evidence of corruption involving Adani Group. He directed the ministries of Transport and Energy to halt all ongoing negotiations with the company immediately.
“I now direct procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum to immediately cancel the ongoing procurement process for the JKIA Expansion Public Private Partnership transaction, as well as the recently concluded KETRACO transmission line deals,” Ruto stated.
CS Mbadi assured the public that Kenya’s interests would remain protected in future dealings, highlighting the government’s commitment to ensuring transparency and accountability in major infrastructure projects.
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CS Mbadi Explains Why Adani Won’t Get Compensation After Ruto’s Decision
