The Tool Desk
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What Kenya proposed—and what had not yet been agreed
Adani Airports submitted a privately initiated proposal to expand Jomo Kenyatta International Airport. Reuters reported a proposed value of $1.85 billion and a 30-year lease; the plan included a second runway and an upgrade to the passenger terminal. It was not a competitively bid contract. Reuters reported that the proposal became public in July 2024 after a social-media leak.
Kenya’s National Treasury told Parliament that Adani Airports submitted the proposal under Section 40(1) of the Public Private Partnerships Act, 2021, and paid a USD 50,000 appraisal fee. The evaluation committee identified 22 issues to be addressed during the project-development phase. The proposal had advanced to that phase, but the parties had not signed a Project Development Agreement. The Treasury account published by Parliament says the committee considered public interest, feasibility, suitability for a PPP, and affordability.
Separately, a Kenyan court issued a conservatory order on 9 September 2024 barring implementation while proceedings were pending. On 13 November, Transport Cabinet Secretary David Chirchir told Parliament that no concession agreement had been executed between the government and Adani. The suspension and lack of an executed concession meant the airport proposal was not an operating concession that Kenya simply terminated.
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Why Ruto said the government cancelled it
In his 21 November announcement, Ruto said he had directed the transport and energy ministries to cancel ongoing procurement processes based on “new information provided by our investigative agencies and partner nations.” The timing followed the U.S. indictment, but the public explanation reported by the Associated Press did not identify the United States or say the indictment alone was the reason.
The announcement covered two distinct arrangements: the airport procurement process and a separate power-transmission contract. Ruto’s statement connected the cancellations to information received by Kenyan agencies and partner nations; it did not announce a Kenyan finding that the allegations against Adani were true.
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What the U.S. indictment alleged—and Adani’s response
U.S. prosecutors alleged that Gautam Adani and seven other defendants had agreed to pay about $265 million in bribes to Indian government officials in connection with a solar-energy project. The case included charges involving securities fraud and conspiracy. These were allegations, not adjudicated findings of guilt.
The Adani Group denied the allegations and said it would pursue legal recourse. The U.S. case concerned alleged conduct connected to an Indian solar project; it was not an indictment alleging bribery in the Kenyan airport proposal. Its relevance to the Kenyan decision is the timing and Ruto’s reference to information from investigative agencies and partner nations—not proof that the Kenyan proposal involved the alleged conduct.
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The airport deal and the power deal were different
| Arrangement | Scope and reported value | Status before Ruto’s announcement | What Ruto announced |
|---|---|---|---|
| Airport proposal | Second runway and terminal upgrade under a proposed 30-year lease; Reuters reported a proposal value of $1.85 billion. | Privately initiated proposal in project development; no Project Development Agreement or concession agreement had been executed. A court order had suspended implementation. | Cancellation of the airport procurement process. |
| Power-transmission PPP | Transmission infrastructure; Reuters reported a 30-year, $736 million PPP. | Reportedly signed the previous month. On the morning of 21 November, Energy Minister Opiyo Wandayi told senators he expected it to proceed and denied corruption in its award. | Ruto separately directed that the energy-transmission contract be cancelled. |
The figures and contemporaneous status descriptions in this comparison were reported by Reuters in 2024; the airport process status was also described by Kenya’s transport secretary and National Treasury in parliamentary accounts. The two arrangements should not be treated as a single airport contract or as having the same legal status.
Why the airport proposal had already become controversial
Critics and opponents objected to the proposal’s transparency and questioned whether it offered value for money. The privately initiated route, rather than competitive bidding, was a central focus of public debate. Workers also protested and struck over concerns about possible job losses and working conditions.
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Kenyan officials defended the PPP process. The National Treasury said the proposal had been evaluated against statutory criteria and that 22 issues remained to be addressed during project development. Those points describe the government’s process and public criticism; they are not a court finding that the proposal was corrupt or unlawful.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the chronology establishes
- March 2024: Reuters reported that Adani’s airport proposal was made through a private-initiated procedure, not competitive bidding.
- July 2024: The proposal became public after a social-media leak, according to Reuters.
- 9 September 2024: A court conservatory order barred implementation pending proceedings, as later recounted by the transport secretary in Parliament.
- 24 September 2024: The National Treasury said the proposal had advanced to project development after appraisal, with 22 issues to resolve, but no Project Development Agreement.
- 13 November 2024: Transport Cabinet Secretary David Chirchir said no concession agreement had been executed.
- 21 November 2024: After the U.S. indictment, Ruto announced cancellation of the airport procurement process and separately directed cancellation of the power-transmission deal.
Accordingly, the clearest supported answer is that Kenya cancelled the airport procurement process after the U.S. indictment, with Ruto publicly citing new information from investigative agencies and partner nations. The decision came amid an existing court suspension and scrutiny over transparency, value for money, and workers’ concerns. The announcement’s timing is clear; a claim that Ruto publicly identified the U.S. indictment as the sole cause is not supported by his reported remarks.
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