According to the government, the proposal was being subjected to a review by various government organs including the National Treasury.
The government has assured Kenyans that it will conduct a thorough due diligence investigation into the Privately Initiated Proposal (PIP) submitted by Adani Airports Holdings Limited for the expansion and modernisation of Jomo Kenyatta International Airport (JKIA).
In a detailed report by Prime Cabinet Secretary Musalia Mudavadi, it was revealed that the proposed Public Private Partnership (PPP) deal with Adani Holdings has not been signed, thus allaying fears of any job losses at the country’s biggest airport.
According to the government, the proposal was being subjected to a review by various government organs including the National Treasury.
Prime Cabinet Secretary Musalia Mudavadi appears before the National Assembly for proposed Supplementary Estimates 1 for the Financial Year 2024/25 on July 22, 2024. /MUSALIA MUDAVADI
“The proposal is currently undergoing the requisite due process, reviews, and negotiations in compliance with the PPP Act whose control checks will cover; value for money assessment, stakeholder engagement, National Treasury approval, clearance by the Attorney General, Cabinet approval and, where required, approval by Parliament before any agreement can be signed,” Mudavadi stated.
Adding, “For the avoidance of any doubt, all terms and conditions of the proposed arrangement are subject to negotiation in accordance with the provisions of the PPP Act and no terms have been agreed upon as yet. As and when the terms are agreed, there shall be appropriate safeguards to ensure that Kenya’s national interest prevails and that the private party is held fully accountable for the performance of its obligations.”
Furthermore, the proposal by the Indian company would be subjected to vetting by various security agencies given the possible security risks that would be involved in the deal.
“In addition, given its status and the important role JKIA plays in national and international security and logistics, as well as being a gateway to a global multilateral hub, any proposal shall be subjected to the appropriate vetting by relevant security agencies,” read the report in part.
At the same time, Mudavadi reaffirmed that the proposed upgrade of JKIA will be conducted in strict adherence to the constitution and specifically following legal frameworks established under the PPP Act.
He added that the project would be subject to rigorous review and scrutiny and that the government was committed to transparency and accountability throughout the process.
According to the Prime CS, the expansion of JKIA was estimated to cost Ksh260 billion, adding that the government was struggling to fund the project due to the current tight financial situation of the country.
Ruto’s administration also detailed the international embarrassment that had befallen the country in recent weeks owing to leaking roofs and the substandard infrastructure for passengers transiting through the airport.
“The airport is 10 years behind its development schedule as per its long-term masterplan and is lagging behind its regional competitors in terms of quality of infrastructure, innovation and technology. Numerous incidents have highlighted the need to upgrade the airport.
“These include leaking roofs that have caused international embarrassment and power outages that have disrupted operations significantly. JKIA is also plagued by inadequate aircraft parking bays, outdated passenger terminals and baggage handling systems, and long waiting times due to inefficient passenger and cargo processing,” read the statement in part.
Mudavadi’s remarks come after President William Ruto, during a Presidential Town Hall held in Mombasa County, refuted claims that JKIA would be sold to the company.
Aerial view of the Jomo Kenyatta International Airport (JKIA) in Nairobi. /FILE