Kenya Airports Authority (KAA) has broken its silence on the rumours about the sale of Jomo Kenyatta International Airport (JKIA).
In a statement issued on Wednesday, July 24, 2024, KAA confirmed the existence of an agreement between JKIA and Adani Airport Holdings Limited.
JKIA upgrade deal
KAA says the deal came as a result of the approval of the JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway and apron, by the cabinet due to the airport’s ageing infrastructure.
“Jomo Kenyatta International Airport (JKIA) is a strategic National asset built in 1978. Its aging infrastructure is a threat to our regional competitiveness.
“The Cabinet approved the JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway and apron. The attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding,” the statement reads in part.
Adani’s role in JKIA
KAA says it had received the investment proposal under the Public Private Partnerships Act 2021 from the Adani Airport Holdings Limited, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA.
“Kenya Airports Authority (KAA) received an investment proposal under the Public Private Partnerships Act 2021 from the Adani Airport Holdings Limited, a key airport operator, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA,” KAA said.
The proposal, KAA says, will be subjected to technical, financial and legal reviews alongside requisite due processes in compliance with the Public Private Partnerships Act 2021.
“The Project Agreement will be preceded by Stakeholder Engagement, the National Treasury approval, the Attorney General clearance and the Cabinet approval.
“I wish to assure our Staff that no jobs are at risk. I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits,” Henry Ogoye, KAA acting Managing director and CEO said in the statement.
📢 PRESS STATEMENT: The Kenya Airports Authority (KAA) releases an official statement on the JKIA Concession Proposal. We remain committed to enhancing infrastructure & service quality at JKIA. Read the full statement below for detailed information. pic.twitter.com/5dwjJ7i3nv
— Kenya Airports Authority (@KenyaAirports) July 24, 2024
Mudavadi on JKIA
Prime Cabinet Secretary (CS) Musalia Mudavadi on Monday, July 22, 2024, clarified on the viral online reports that the JKIA has been leased to a private entity.
Speaking when he appeared at the National Assembly’s Budget and Appropriations Committee, Mudavadi said that JKIA is a public asset and it can only be sold after a full public process that parliament endorses.
He added that the airport needs modernisation since the new terminal never took off the contractual engagement.
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