Cabinet Secretary (CS) for the National Treasury and Economic Planning John Mbadi has shed light on Kenya-Adani deals most after President William Ruto’s cancellation.

Speaking during an interview with a K24 TV reporter outside the parliament building after Ruto’s State of the Nation Address on Thursday, November 21, 2024, Mbadi said that the Adani procurement process had just begun.

In addition, the CS added that they were still doing due diligence and had not reached the negotiation stage with the Indian conglomerate.

“We were way too far Adani procurement process had just begun, We were still doing due diligence we had not even reached the negotiation stage,” CS Mbadi said.

CS Mbadi on cancellation

The CS further explained that the Privately Initiated Proposal Act (PIP) allows the cancellation of the procurement process at whatever stage adding that even the deal that has already been signed can still be cancelled after negotiation.

“There are various procurement methods. The one which is commonly known as the Adani deal, the JKIA and if you look at the PPI Act, especially this procurement method called PIP until you sign the contract you can stop the process at whatever stage before the negotiations are concluded, even at, that is signed can still be negotiated and still be cancelled.”

“To me it is timely, it is stopped at a time when we do not have any legal challenges,” he explained.

He noted that the model of procurement used in deals does not tie the government until the process is complete adding that Adani will be refunded the amount of money they paid because the termination was not based on a mutual agreement.

“This is not a competitive procurement process PIP Act is a model of procurement which does not tie your hands until you complete the process I do not see any possibility of losing any money, the amount they paid would be refunded because it is not a mutual termination in PIP is the most flexible method of procurement,”

Hon. Mbadi: The Adani procurement process had just begun. We were still doing due diligence.#K24Siasa pic.twitter.com/5YQxD0bsI1

— K24 TV (@K24Tv) November 21, 2024

Ruto on Adani deals

During the State of the Nation address, Ruto announced the cancellation of Kenya-Adani deals.

Ruto directed the Ministry of Transport and the Ministry of Energy and Petroleum to act immediately, cancelling both the ongoing JKIA procurement process and the KETRACO transmission public-private partnership (PPP) deal.

“Accordingly, I now direct in furtherance of the principles enshrined in article 10 of the constitution on transparency and accountability and based on new information provided by investigative agencies and partner nations that the procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA expansion public-private partnership,”

“I have said that because of the information provided to us by partner nations, I have directed 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 public-private partnership transaction,” Ruto declared.