Kenyan envoy to Tanzania,  Dan Kazungu has debunked claims that he endorsed a shadowy firm in a Sh18 billion cashew nuts deal with President John Magufuli's country.

Mr Kazungu in a statement on Wednesday in response to a story published in  Kenya’s media ‘the Nation’, which said he endorsed Indo Power Solutions and that it took President Magufuli’s government for a ride in the deal.

On January 30, Tanzanian cereals board director Dr Hussein Mansoor and Indo Power's Chief Executive Officer Brian Mutembei signed a deal for the sale of 100,000 tonnes of cashew nuts at the East African Community headquarters in Arusha.

The deal was signed in the presence of Mr Kazungu; Tanzanian Minister for Industries and Trade, Joseph Kakundi; Minister for Constitutional and Legal Affairs, Prof Palamagamba Kabudi; and Deputy Minister for Agriculture Dr Innocent Bashungwa.

Mr Kazungu noted that Indo Power, a Kenyan company, followed the right procedure of transacting businesses between the two states.