Adani deals: A story of hypocrisy and dysfunction in leadership

National Students' Union of India (NSUI) activists hold placards as they shout slogans during a protest demanding the arrest of Indian tycoon Gautam Adani over corruption allegations by US prosecutors, in New Delhi on November 21, 2024. - India's Adani Group on November 21, 2024 called US charges that their billionaire tycoon founder Gautam Adani had paid more than $250 million in bribes "baseless", as the opposition leader demanded his arrest.[ AFP]

It signals a troubling pattern of government that places political expediency above commitment to national interests.

The Adani deal scandal reflects the ills of political expediency and hypocrisy in Kenya’s leadership. Originally billed as an ‘ideal’ alliance, the agreement included commitments between the Kenyan government and India’s Adani Group for projects including infrastructure expansion of the Kenya Electricity Transmission Company (Ketraco), the upgrading of Jomo Kenyatta International Airport (JKIA), and healthcare. But recently, these steps have come into question as it has been shown that there are flaws in the way the government makes decisions and the integrity of its leaders.

The State promoted the Adani agreements as a cornerstone of Kenya’s development programme. The initiatives promised modernisation, improved infrastructure and better healthcare – important parts of the nation’s socioeconomic growth. The treaties received an enthusiastic welcome from Parliament, which endorsed the government’s promise of national growth and prosperity.

In the background, doubts were voiced about the Adani Group’s openness and diligence. The multinational conglomerate, once lauded for its sweeping projects, had already been accused of corporate fraud in other countries. Kenyan leadership seemed untouched by that and disregarded the warnings of civil society and industry.

This drama unfolded during the President’s State of the Nation address after the US Department of Justice announced that the Adani Group had been indicted for fraud and corruption. This came as a surprise, adding fuel to domestic concerns about Kenya’s entanglement in an unequivocal alliance. It inflicted an enormous cost on the State to combat fears that it was taking the country down a slippery slope.

In his speech, the President pushed the final nail in the Adani deals coffin: He cancelled the Adani agreements on the basis of intelligence provided by foreign partners. Despite making pledges to the Ketraco and JKIA projects, he was unobtrusively silent about where the healthcare agreements stood. That silence implied that the healthcare project was not completed or was deliberately left out to control perception. However, some wondered whether the government was as transparent as it was honest.

The President’s move was an abrupt pivot in the government’s approach towards the Adani deals. The same Parliament that had so vocally endorsed the agreements, gave the president a standing ovation for aborting them. In the same way, Cabinet members who had initially signed off on the deal were quick to praise the move as proof of the President’s willingness to listen to the public.

This flip was hypocritical beyond measure. It exposed a leadership academy less committed to values than to making a splash. When the agreement looked politically sound, parliamentarians and Cabinet ministers pushed it through. Yet as soon as the US indictment challenged the Adani Group’s credibility, they abandoned their prior positions and tried to conform to popular opinion.

The Adani story speaks to the importance of greater accountability and openness in Kenyan governance. It signals a troubling pattern of government that places political expediency above commitment to national interests. Instead of carefully analysing the pros and cons of the Adani transaction, they seem to have sailed the global partnership wave blindly.

This episode also casts more general doubts on Kenya’s foreign ties. The government should ensure that all relationships, whether with global conglomerates or with other governments abroad, are based on shared benefits, openness and accountability. The Adani mess is a cautionary tale, and the country should never let fast-tracked ambiguous deals to blindfold it.

Kenyan leaders have to make more consistent, principled decisions in the hope of restoring trust in government. This includes:

1. Open talk: Any large contract with foreign actors needs to be thoroughly scrutinised, and openly disclosed in order to promote transparency.
2. Institutional review: Third parties, including parliamentary committees and anti-corruption agencies, must take an active role in reviewing such arrangements.
3. Participation of the public: Government should make sure that citizens and civil society have a say in major projects and that public views will shape government policies.
4. Moral leadership: Leaders should act honestly, working to improve the country’s long-term prospects instead of their own political advantage.

The Adani deal saga epitomises the wider dysfunction in Kenya’s leadership: A willingness to sideline principles for convenience. The quick pivot by Parliament and Cabinet highlights the hollowness of the country’s political discourse.

To see its developmental dreams come true, Kenya has to expect more from leaders – honesty, accountability and unflagging devotion to the public interest. Anything less would merely fuel the cycles of disbelief and underdevelopment that have plagued the country for decades.