Adani Group clarified on November 23 that it has not entered into any binding agreement to operate Kenya’s main airport, addressing reports that Kenya cut off more than $2.5 billion in business following a US indictment related to bribery allegations.

The group was responding to inquiries about news that Kenyan President William Ruto had ordered the suspension of a procurement process that was expected to award Adani Group control of the country’s main airport, following the indictment of its founders in the United States.

Regarding the agreement signed last month to build and operate key electricity transmission lines in Kenya for 30 years, the group stated that this project does not fall under the disclosure requirements imposed by SEBI (Securities and Exchange Board of India), and therefore there no need to disclose any cancellation.

Adani Enterprises Ltd, the flagship company of the group, which oversees its airport operations, confirmed that in August it established a subsidiary in Kenya to upgrade, modernize and manage airports.

“While the company was in discussions with the relevant authority for the said project, neither the company nor its subsidiaries (i) has been awarded any airport project in Kenya, or (ii) entered into any binding or definitive agreement in relation to any airport in Kenya,” the company said .

The company neither confirmed nor denied reports that Kenya canceled the airport deal.

In a separate filing on October 9, Adani Energy Solutions Ltd, which operates power transmission lines, confirmed it was awarded the contract to build transmission lines in Kenya. After this, a subsidiary was established in Kenya.

“We submit that the project does not fall within the ambit of Clause 4 of Para B, Part A, Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), 2015, as amended (Sebi Listing Regulations) requiring intimation of allotment , packing/receiving, changing or canceling assigned/bagged orders/contracts other than in the ordinary course of business,” it said, refusing to confirm or deny the cancellation.

The group added that if the project were to be cancelled, disclosure would still not be required under SEBI rules.

Under the proposed airport deal, worth nearly $2 billion, the Adani Group would add a second runway to Nairobi’s Jomo Kenyatta International Airport and upgrade the passenger terminal, in addition to operating the airport under a 30-year lease.

On November 21, President Ruto announced the cancellation of a separate 30-year, $736 million public-private partnership with an Adani Group company to build power lines. The move followed the indictment of Gautam Adani, the group’s founder and chairman, and seven others by US authorities for allegedly paying $265 million in bribes to Indian officials in exchange for lucrative solar contracts.

The Adani group has denied the allegations, calling them baseless and saying it will pursue all legal avenues.

The tender to operate Kenya’s main airport had been canceled after local protests. In addition, Adani Energy Solutions Ltd had signed an agreement with Kenya Electricity Transmission Company Ltd (KETRACO) to develop three transmission lines and two substations last month.

(With inputs from PTI)