A day Prime CS Musalia Mudavadi dismissed rumors that JKIA is on sale, the Kenya Airports Authority (KAA) have spoken.
KAA confirmed receiving a major investment proposal from Adani Airport Holdings Limited. This proposal aims to upgrade Kenya’s busiest airport, which has been operational since 1978.
Arguably, JKIA is long overdue for an upgrade considering it has been on the spotlight for power failures and flooding when it rains.
In exchange, the airport will be leased to the investors for 30 years.
KAA Acting CEO Henry Ogoye highlighted that JKIA’s aging infrastructure poses a threat to regional competitiveness.
“Our infrastructure needs a major overhaul to stay competitive,” Ogoye said.
The proposed upgrade, called the JKIA Medium Term Investment Plan, includes major improvements to the passenger terminal, runway, taxiway, and apron. While the Cabinet has approved it, the needed investment is more than the government can afford.
“The investment needed is substantial, and without private funding, it is not feasible,” Ogoye added.
To address this funding gap, KAA will partner with Adani under the Public Private Partnerships Act 2021. This partnership will be subjected to detailed technical, financial, and legal reviews.
“The Project Agreement must receive clearance from the National Treasury, the Attorney General, and the Cabinet,” Ogoye explained.
KAA assured JKIA employees that the upgrades will not lead to job losses. Rather, “The expanded facilities will create new business opportunities and benefits for airport operators and the community,”
Whle Prime CS Musalia Mudavadi reassured Kenyans that JKIA would not be sold, he clarified that the goal is to modernize the airport and build a new terminal.
JKIA-Adani Deal Criticized
Despite these assurances, some legislators, such as Kisii Senator Richard Onyonka, have questioned the transparency of the deal, which involves a 30-year concession under a Build, Operate, and Transfer (BOT) model.
Onyonka also criticized the proposed contract, which he claims grants Adani an 18% equity stake in the airport’s assets after the concession term.
“Why would we agree to such a contract?” Onyonka asked, referencing concerns from an unnamed French whistleblower.
By Vivian K.