Kenyans must prepare to pay the controversial Indian firm, Adani, for the work already completed even as the government finalises terminating the impugned multi-billion-shilling deal, which was cancelled in November last year.

Energy Principal Secretary (PS) Alex Wachira warned that Kenyans will have to bear the cost of compensating Adani for the work so far, though he did not disclose the actual amount.

“We are finalising the process. The company had carried out feasibility studies, project designs and drawings and we will have to compensate them. We have signed the project agreement and once we sign the final termination papers, we will be able to onboard any new investor,” Wachira said.

The Principal Secretary (PS) said negotiations on the final compensation amount for Adani will be shared with the Public Debt and Privatisation Committee. He stressed that compensating Adani is crucial, as acquiring the company’s documentation will help reduce onboarding costs for a new investor.

“There are key documents we need from Adani, which is why we are finalising the termination. Without these, the next contractor would have to start from scratch, and the costs would still fall on Kenyans,” he explained.

President William Ruto cancelled the controversial Adani Group deal to take over Kenya’s energy and aviation sectors, directing the Ministries of Transport and Energy to find alternative partners. He announced this during his State of the Nation Address in November last year, citing credible evidence from relevant agencies.

“In the face of undisputed evidence or credible information on corruption, I will not hesitate to take action,” said President Ruto.

His statement followed a series of allegations against the Adani Group, including charges brought by the US government against its chair, Gautam Adani.

Ruto announced the termination of agreements involving Jomo Kenyatta International Airport (JKIA) and KETRACO, signed by his government with the Adani Group. These deals covered five key transmission lines across the country.

The US Department of Justice indicted Gautam Adani and his nephew, Sagar Adani, for allegedly orchestrating a bribery scheme involving over $250 million in payments to Indian officials to secure solar energy contracts.

Yesterday, committee members questioned why the Adani Group was engaged when the Ministry of Energy has the capacity to handle such projects. They argued that poor planning has placed Kenyans at the centre of a contract that could have been avoided.

The PS told the committee that an advance payment of about Sh970 million has been made to contractors for the National System Control Centre (NSCC) project.

Valued at Sh12 billion, the NSCC project is financed by France through concessional sovereign loans from the French Development Agency (AFD) and the French Treasury.