Kenya in a Fix as US Court Orders Arrest of Adani Group Bosses

𝐖𝐞𝐥𝐜𝐨𝐦𝐞 𝐭𝐨 𝐓𝐨𝐝𝐚𝐲’𝐬 𝐌𝐨𝐧𝐞𝐲 𝐍𝐞𝐰𝐬 𝐑𝐨𝐮𝐧𝐝 𝐔𝐩: 𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟐𝟏, 𝟐𝟎𝟐𝟒
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A week after Transport CS Davis Chirchir defended India’s Adani Group against corruption allegations, its CEO Gautam Adani and senior executives were charged in the US over a Ksh32 billion bribery scheme. Global media reports indicate that US federal authorities believe that high-ranking officials in the Adani Group bribed Indian officials to secure green energy contracts and defraud investors. Evidence includes bribe tracking documents and financial analyses. The New York court that indicted Adani also proceeded to issue warrants of arrests against its senior officials, including the Group Chairman Gautam Adani. The warrants are expected to be issued to foreign law enforcement agencies for enforcement. The development puts Kenya in an awkward position, as it has defended Adani’s integrity - and Kenya has a close diplomatic relationship with the US - including frequent  collaboration between their law enforcement agencies. 

The Treasury is seeking Parliament’s approval for an additional Ksh17.7 billion to fund key programs, including Ksh2.16 billion for Kenya’s security mission in Haiti, where 1,000 officers are deployed to combat gangs. According to a report by the Business Daily, Ksh807.5 million is allocated for immigration services, Ksh2.3 billion for road projects, and Ksh78 billion for energy, including Ksh190 million for Kenya-Tanzania power interconnections. The funds, accessed under Article 223 of the Constitution, aim to cover urgent financial needs and require parliamentary approval within two months for implementation.

Treasury CS John Mbadi has proposed reducing PAYE and other taxes within two years by broadening the tax base through enhanced personal income, rental, and VAT collections, as reported by The Standard. Speaking in Mombasa, he emphasized maintaining SHIF and housing levies but acknowledged public discontent over heavy taxation. Mbadi highlighted challenges like pending bills, high loan rates, and stagnant sectors like manufacturing and construction. He also stressed reducing the budget deficit, revamping KRA systems, and achieving 8% economic growth to create jobs and address public debt at Ksh10.6 trillion.

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The Business Daily reports that Kenya's revenue shortfall hit Ksh42.9 billion in the first four months of the 2024/25 fiscal year, driven by underperforming taxes, especially VAT, which missed its target by Ksh21.7 billion. The Kenya Revenue Authority (KRA) improved collections in October, surpassing its target by Ksh7 billion. Despite this, ordinary revenue growth slowed to 3.4% from 13% the previous year. Treasury PS Chris Kiptoo linked the initial gaps to the withdrawal of the Finance Bill, 2024, and economic disruptions. New tax reforms are expected to sustain future collections.

Kenya Power has launched its Sustainability Strategy to integrate eco-friendly practices into operations. As reported by Capital Business, key measures include promoting e-mobility, e-cooking technologies, and clean energy sourcing while reducing the company's carbon footprint. CEO Joseph Siror highlighted the plan's role in tackling climate change and fostering a resilient energy ecosystem. Board Chairperson Joy Brenda Masinde emphasized the balance between economic growth and environmental care, ensuring sustainable development. Kenya Power reaffirmed its commitment to preserving resources for future generations.