The cancellation of the multi-billion Adani tender will not come with any cost to taxpayers, National Treasury Cabinet Secretary John Mbadi has said.
He said only the deposit made by the Indian conglomerates will be refunded.
This has been enabled by Privately Initiated Partnership procurement arrangement the country was using to engage Adani.
“The beauty with PPI is that it can be stopped at whatever stage before the negotiation is concluded, we were still at the procurement process,” Mbadi said.
“It is stopped at a time when we don’t have any legal challenges. This was part of the due diligence and we have done due diligence as a government.”
“I don’t see the possibility of losing any money. Compensating them for what? The only thing is the amount they paid, which will be refunded because this was not a mutual termination,” he said.
The CS’s assurance now puts to rest claims by a section of leaders that the government was going to incur huge losses as a result of the cancellation.
Law Society of Kenya demanded that the government makes public all costs and losses the country will incur as a result of the cancellation.
President Faith Odhiambo while welcoming the move said the state should tell Kenyans how much the country spent when pursuing the deal.
“We welcome this presidential directive, which is in line with the will and best interests of the people of Kenya. While we prepared to prosecute both matters to a conclusion, we acknowledge that a concession on the part of the government regarding the overwhelming concerns around the two proposals is a more expeditious, reconciliatory and people-driven approach towards resolving the protracted impasse between the people of Kenya and the government,” she said in a statement.
Ruto cancelled the Adani Group takeover of the Jomo Kenyatta International Airport, where an Indian firm was to take over the airport’s renovation at a cost of Sh238 billion and manage the operations of the country’s largest airport for 30 years.
Adani Energy Solutions, a subsidiary registered in Kenya, had also signed another Sh95 billion with Ketraco to build electricity transmission lines.
The company was also to manage the transmission lines for 30 years. Ruto’s move was welcomed by many Kenyans including legislators who gave the President a standing ovation for heeding to public outcry.
Movement for Democracy and Growth party leader David Ochieng’ praised the President for the move calling for a more transparent process in identifying the next strategy.
“The opaqueness of the Adani deal
meant it was doomed to fail. Kenyans
voiced their fears and demanded the
discontinuation of the contract, the
MDP party demands that any new
process must inculcate the principle
of transparency and incorporate the
public at each and every step," he said
