The Kenya Airports Authority (KAA) has announced an investment proposal from Adani Airport Holdings Limited.
To upgrade the ageing infrastructure of Jomo Kenyatta International Airport (JKIA). Kenya’s busiest airport has been operational since 1978.
KAA Acting CEO Henry Ogoye highlighted the urgent need for modernization.
Citing that the airport’s outdated infrastructure threatens Kenya’s regional competitiveness.
Adani Group’s vision
The comprehensive upgrade plan, known as the JKIA Medium Term Investment Plan, has been approved by the Cabinet
However, it requires significant capital investment beyond the government’s current fiscal capabilities.
Adani’s proposal includes extensive improvements to the passenger terminal building, runway, taxiway, and apron.
“The Cabinet approved the JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway, and apron,” KAA stated in a Wednesday media release.
“The investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding.”
The partnership with Adani, formed under the Public Private Partnerships Act 2021, will undergo rigorous technical, financial, and legal reviews to ensure compliance with the act.
“The Project Agreement will also involve thorough stakeholder engagement, approval from the National Treasury, clearance from the Attorney General, and final Cabinet approval,” Ogoye added.
To address concerns from staff and the airport business community, KAA assured that no jobs would be lost due to the planned upgrades.
Instead, the expanded facilities are expected to create new business opportunities and benefits for airport operators and the broader community.
In response to public apprehensions about a potential sale of the airport, Prime Cabinet Secretary Musalia Mudavadi clarified to the National Assembly Budget and Appropriations Committee that the airport is not for sale.
“The airport is not on sale. This is a public asset, a strategic asset.
If it was going to be sold, you can only do it after a full public process that parliament endorses,” Mudavadi assured the MPs.
Instead, the government plans to modernize the existing facilities and construct a new terminal.
JKIA embarrassing moments
Mudavadi emphasized the need for transparency and adherence to legal procedures during the expansion process, ensuring all stakeholders are well-informed.
Kisii Senator Onyoka has publicly expressed concerns about the airport’s takeover, claiming the government has transferred ownership to foreign entities.
“We are signing off our airport to be run by a private company for 30 years, and after the contract expires, they will keep the equity of our airport at the rate of 18 percent.
Why would anyone sign such an agreement?” Onyoka questioned, referencing an unnamed French whistleblower.
Despite these concerns, the proposed partnership with Adani aims to revitalize JKIA.
Further enhancing its capacity and services while maintaining transparency and safeguarding public interests.
