By Kenya has terminated two high-profile agreements with India’s Adani Group, intensifying scrutiny on the conglomerate, which is already reeling from allegations of bribery by US authorities.
Kenyan President William Ruto announced on Thursday that his government had canceled the procurement process for expanding Nairobi’s Jomo Kenyatta International Airport and a $700 million deal for constructing power transmission lines.
These decisions mark a significant setback for the Adani Group as it faces a cascade of legal and financial challenges worldwide.
Speaking at a press conference, Ruto confirmed that the airport expansion project, for which Adani Group was among the bidders, would no longer proceed under the current procurement process.
Similarly, the energy ministry’s agreement with an Adani subsidiary to construct transmission lines has been scrapped, Reuters reported.
The Kenyan government’s decision comes at a time when Adani Group is under the global spotlight following fresh bribery allegations in the United States.
The group has yet to issue a public response to Kenya’s actions.
Adani shares plummet after US bribery allegations
Shares of companies linked to the Adani Group plunged on Thursday after US prosecutors accused founder Gautam Adani and top executives of paying $250 million in bribes to Indian officials.
Adani Enterprises, the group’s flagship firm, saw its stock nosedive by over 20%.
Other group entities, including Adani Green Energy and Adani Ports, dropped by 19% and 13%, respectively.
Australian investment firm GQG Partners, a key investor in Adani Enterprises, also suffered, with its shares falling nearly 20%.
Indian stock markets felt the impact, as the NIFTY 50 index slipped by 0.7%, erasing $15 billion from Gautam Adani’s net worth, according to Bloomberg.
In response, the Adani Group dismissed the US allegations as “baseless,” vowing to pursue all possible legal options.
“We are a law-abiding organization, fully compliant with all laws,” a spokesperson stated.
The shadow of Hindenburg Research
The Adani Group has been navigating turbulent waters since January 2023, when US-based Hindenburg Research accused it of stock manipulation and accounting fraud.
The allegations wiped out $153 billion in market value at the time, marking one of the largest wealth erosions in corporate history.
While Adani shares staged a recovery through 2023 and mid-2024, hitting peaks in June, new allegations have revived concerns.
US prosecutors now allege the conglomerate engaged in bribery, money laundering, and obstruction of justice.
The accusations also suggest the misuse of over $2 billion raised through loans and bond offerings.
Hindenburg Research, which had profited minimally from its earlier short position against Adani, continues to monitor the conglomerate.
In September 2024, it claimed Swiss authorities had frozen $310 million linked to Adani entities, a charge the group denied.
Gautam Adani’s business empire
Gautam Adani’s business empire, spanning sectors such as aviation, maritime, and energy, is closely tied to India’s economic ambitions.
A known ally of Prime Minister Narendra Modi, Adani has faced criticism for leveraging political connections to secure lucrative contracts.
The opposition Indian National Congress party has renewed calls for an investigation into Adani’s business dealings.
Party leader Rahul Gandhi has even demanded the billionaire’s arrest, raising questions about the future of Adani’s ventures.
The latest setbacks could undermine Adani Group’s international projects, including its green energy initiatives and a massive slum redevelopment in Mumbai.
The conglomerate has also pledged billions toward energy projects in the US and Bhutan, ambitions now overshadowed by legal troubles.
As Kenya distances itself from Adani and global scrutiny intensifies, the conglomerate faces mounting challenges to restore investor confidence.
The unfolding events not only threaten Adani’s standing but also cast a shadow over India’s business landscape, with global investors watching closely for further developments.
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