In a letter to the National Stock Exchange of India and the Bombay Stock Exchange (BSE), Adani Enterprises Limited stated that the cancellation of its project proposals in Kenya had no material impact on the company’s operations.
President William Ruto ordered the immediate cancellation of the procurement process between various state authorities and Adani Group subsidiaries during a State of the Nation address on Thursday. Adani admitted that there were deliberations between the company’s subsidiaries with relevant Kenyan agencies to upgrade and modernise the JKIA but the project was never awarded. The company told the bourses that no disclosure requirements under Regulation 30 of the Securities and Exchange Board of India (SEBI) was triggered by the Kenyan government.
“While the company was in discussion with the relevant authority for the said project, till date neither the company nor its subsidiaries have been awarded any airport project in Kenya, or entered into any binding or definitive agreement in connection with any airport in Kenya,” Adani stated.
The cancellation of the Adani deals followed the indictment of Indian businessman Gautam Adani by US authorities over bribery charges. Although the government initially tried to defuse public demand for the vacation of the proposals, the pressure intensified and the president had to yield.
In October, one of the subsidiaries, Adani Energy Solutions, signed a USD 736 million deal with the Kenya Electricity Transmission Company Limited (KETRACO) to develop, finance, and maintain key power infrastructure in Kenya.