‘We were still doing due diligence’ CS Mbadi shed light on JKIA, KETRACO- Adani deal after President Ruto cancelation

Cabinet Secretary for the National Treasury and Economic Planning John Mbadi has provided insight into the Kenya-Adani agreements following President William Ruto’s cancellation.

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 noted that the Adani procurement process had just commenced.

He further mentioned that they were still conducting due diligence and had not yet entered the negotiation phase with the Indian conglomerate.

“We were still in the early stages of the Adani procurement process; the due diligence was ongoing, and we had not even reached the negotiation stage,” said CS Mbadi.

The CS elaborated that the Privately Initiated Proposal Act (PIP) permits the cancellation of the procurement process at any stage and emphasized that even signed agreements can be revoked after negotiations.

“There are various procurement methods. ” The agreement commonly referred to as the Adani deal, concerning the JKIA, is governed by the PPI Act. Under this procurement method known as PIP, one can halt the process at any stage prior to contract signing, even if negotiations are still ongoing; the contract can be edited or canceled post-signing.

According to him, the timing is appropriate, as the process is currently free of legal challenges. He pointed out that the procurement model utilized in such deals does not obligate the government until its completion, and Adani will receive a refund for the amount paid due to the termination not being based on mutual consent.

He emphasized that this is not a competitive procurement process, explaining that the PIP Act allows for flexibility and does not bind one until the process is finalized. He does not foresee any potential loss of funds, asserting that the amount paid would be refunded since the termination was not mutual, and PIP is recognized as the most adaptable procurement method.