Kenya: The KAA Comes Clean On JKIA Upgrade Deal With Adani Group

The Kenya Airports Authority (KAA) has disclosed the existence of an investment proposal with the Indian conglomerate Adani Airports Holdings, ending speculation about the sale of Jomo Kenyatta International Airport.

This follows mounting pressure from a coalition of civil society organizations that demanded full disclosure on the deal between the KAA and the Indian multinational Adani Group.

In a statement, KAA acting Managing Director Henry Ogoye explained that the proposal will be subjected to technical, financial and legal reviews alongside requisite due processes in line with law.

"The Kenya airports Authority received an investment proposal under the Public Private Partnership act 2021 from the Adan Airport Holdings Limited, a key airport operator, to invest in a new passanger terminal building, second runway and refurbishment of the existing facilities at the JKIA, "said.

The JKIA is a strategic national asset built in 1978 with its aging infrastructure posing a threat to regional competitiveness.

The Cabinet approved JKIA Medium Term Investment Plan covering the upgrade of the passanger terminal building , runway, taxiway and apron.

Mr Ogoye explained that the attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding.

"The Project Agreement will be preceded by stakeholder engagement, the National Treasury approval, the Attorney General clearance and Cabinet approval," he noted, adding that no jobs will be lost

In their letter to KAA, the civil society organisations including the Law Society of Kenya (LSK), Kenya Human Rights Commission (KHRC), Africa Centre for Open Governance (AFRICOG), and The Institute for Social Accountability (TISA) emphasized the need for public accountability.

The coalition had given the KAA 14 days to provide copies of all correspondence and minutes of meetings held by KAA regarding the deal, as well as information on how Adani Group was selected for the deal.

They further demanded for details on the procurement process of ALG: Global as the transaction advisor; a copy of the feasibility study or financial sustainability report prepared by ALG: Global; and copies of the contracts between KAA and ALG: Global, and KAA and Adani Group.

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