Nairobi — Prime Cabinet Secretary Musalia Mudavadi has allayed fears that the government is mulling the sale of Jomo Kenyatta International Airport (JKIA) saying no such plans have been made.
Mudavadi who appeared before the Budget and Appropriation Committee chaired by Ndindi Nyoro (Kiharu) to defend the supplementary budget one estimates for the financial year 2024/2025 said the decision requires parliamentary approval.
Details had emerged that government had entered into an alleged private deal to lease the Jomo Kenyatta International Airport (JKIA) to an Indian firm, Adani Airport Holdings Limited.
"Let me put it clearly that the Jomo Kenyatta International Airport is not on sale. Its a public assets and a strategic asset. If it what to be sold you can only do it after a full public process that Parliament endorses," he said.
The Prime Cabinet Secretary elaborated that Kenya Airports Authority (KAA) should initiate plans to modernize the international airport to enhance passenger experience and increase traffic.
According to the plans, which were unveiled in the Medium Term Plan launched by President William Ruto this year the government will construct a brand new terminal at the international facility.
JKIA has long faced criticism over issues such as leaking roofs, inadequate drainage, and lack of shelter, which have been particularly problematic during the onslaught of heavy rainfall in early March.
"Anybody giving the impression that the Airport has been sold is not being factual. What we need to appreciate we will to modernize our airport and that needs resources to create new terminals. Going forward KAA must look at its investment carefully," Mudavadi said.
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This comes hot on heels as Kisii Senator Richard Onyonka had sought details of the contract between Kenya Airports Authority and transaction advisor ALG a Spanish firm.
He cited the ownership of the company, processes undertaken to identify and final award of the contract to develop an Air Transport Policy in Kenya and subsequent payment of Sh160million to the company.
"In the statement, the committee should state the reasons for the government plans to avail free land to the company to build a city-side development on public land which may lead to land issues in areas surrounding JKIA," reads part of the statement.
The Senator claimed that KAA entered an agreement with ADANI Commercial a private company to 'Build, operate and Transfer' to lease JKIA and the process to pay a fixed concession fee as will be agreed in the concession agreement.
According to Onyonka, the tenure of the model was to be 30 years where the assets developed through capital expenditure by the company will be transferred to KAA at the expiry of the concession term.
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