Adani Group on Saturday issued a clarification regarding reports that Kenya had canceled over $ 2.5 billion in deals following bribery charges against its founder Gautam Adani in the US. The group stated that it had not entered into any binding agreements to operate Kenya's primary airport.
In its response to stock exchange inquiries, the conglomerate addressed speculation that Kenyan President William Ruto had halted a procurement process that might have awarded Adani control over Jomo Kenyatta International Airport. The company noted that discussions were ongoing but no definitive agreements had been reached.
Airport Deal Speculation
Adani Enterprises Ltd., the group's flagship company managing its airport ventures, revealed it had set up a subsidiary in Kenya in August to modernise and manage airports. However, it clarified, "Till date, neither the company nor its subsidiaries have been awarded any airport project in Kenya or entered into any binding or definitive agreement."
The firm refrained from confirming or denying the reported cancellation of the airport deal, which was estimated at nearly $ 2 billion. The proposed agreement would have seen Adani add a second runway and upgrade the passenger terminal at Jomo Kenyatta International Airport, operating it on a 30-year lease.
Power Transmission Project Also Under Scrutiny
Adani Energy Solutions Ltd., a subsidiary focused on power transmission, separately addressed reports of its agreement with Kenya being voided. Last month, the firm had signed a pact with the Kenya Electricity Transmission Company Ltd. (KETRACO) to develop three transmission lines and two substations.
In its statement, the company noted that the transmission project did not require disclosure under the Securities and Exchange Board of India (SEBI) regulations. It said the project was "in the ordinary course of business," and any cancellation would not necessitate disclosure either.
Kenyan President William Ruto, in his State of the Nation address, announced the cancellation of the $ 736 million public-private partnership for the transmission lines, citing irregularities.
Bribery Allegations Denied
The developments come in the wake of US authorities indicting Gautam Adani and seven others for allegedly agreeing to pay $ 265 million in bribes to secure solar power contracts in India. Adani Group dismissed the allegations as "baseless" and vowed to pursue "all possible legal recourse."
Local protests in Kenya had earlier disrupted the tender process for the airport deal, contributing to the uncertainty surrounding the agreements. As the situation unfolds, the Adani Group has reiterated its commitment to adhering to legal and regulatory norms while defending its global business interests.