Adani Group Denies Pact to Operate Kenya's Main Airport Amid Bribery Allegations

The Adani Group, led by billionaire Gautam Adani, addressed reports about Kenya cancelling deals worth over USD 2.5 billion. The group clarified that it had not entered into any binding agreement to manage Kenya's main airport. This statement came after news of a US indictment on bribery charges involving the group's founder.

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Adani Enterprises Ltd, the flagship firm managing the group's airport ventures, stated that it had established a subsidiary in Kenya in August. This subsidiary was intended to upgrade and manage airports. However, no definitive agreements have been made regarding any airport projects in Kenya.

Adani Energy Solutions' Transmission Project

Adani Energy Solutions Ltd, responsible for power transmission lines, announced on October 9 that it was awarded a project to build transmission lines in Kenya. A subsidiary was subsequently formed in Kenya for this purpose. The company asserted that this project is part of its regular business activities.

The group explained that the project does not require disclosure under the Securities and Exchange Board of India (SEBI) Listing Regulations. These regulations mandate disclosure only for significant contracts outside ordinary business operations.

Airport and Power Deals Under Scrutiny

The proposed airport deal involved adding a second runway and upgrading the passenger terminal at Jomo Kenyatta International Airport. The agreement, valued at nearly USD 2 billion, included a 30-year lease to operate the airport.

Kenya's President William Ruto announced the cancellation of a separate USD 736-million public-private partnership with an Adani Group firm. This partnership aimed to construct power transmission lines and was signed with the Ministry of Energy and Petroleum last month.

The cancellation followed US authorities indicting Gautam Adani and others for allegedly offering USD 265 million to Indian officials for solar power contracts. The Adani Group has denied these allegations and plans to pursue legal action.

Local Protests and Legal Challenges

The tender for operating Kenya's main airport faced delays due to local protests. Despite discussions with relevant authorities, Adani Enterprises Ltd confirmed no binding agreements were reached for any airport projects in Kenya.

Adani Energy Solutions Ltd had previously signed an agreement with the Kenya Electricity Transmission Company Ltd (Ketraco). This agreement involved developing three transmission lines and two substations in Kenya.

The group reiterated that any cancellation of such projects would not require disclosure under SEBI regulations as they fall within ordinary business operations. The company remains committed to its energy transmission and distribution activities.