Commissioner for Parliamentary Service Commission Johnson Muthama has castigated the proposed deal between Jomo Kenyatta International Airport (JKIA) and Adani Airport Holdings Limited.
According to Muthama, the deal, which he estimates at Ksh240 billion, could be worse than the Goldenberg and Anglo Leasing deals which saw the country bleed billions.
“The Goldenberg and Anglo Leasing deals seemed beneficial at first, but they ultimately had negative consequences for Kenyans. Similarly, the Sh240 billion Adani-JKIA deal might end up being even worse. Does leasing JKIA to this private firm suggest that Kenyans lack ideas on how to improve their institutions?” Muthama posed.
“I will say more later.”
KAA speaks on JKIA-Adani deal
In a statement on July 24, 2024, the Kenya Airports Authority (KAA) confirmed the existence of the deal.
KAA said 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 ageing infrastructure is a threat to our regional competitiveness,” KAA stated
“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.”
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.
Mudavadi speaks over the deal
On Monday, Prime Cabinet Secretary Musalia Mudavadi said the government received a Privately Initiated Proposal (PIP) from an Indian company in March 2024 to upgrade JKIA following a public uproar.
Mudavadi says that the proposal by Adani Airport Holdings is currently undergoing a review.
“The Kenya Airports Authority received a Privately Initiated Proposal (PIP) from Adani Airport Holdings of India in March 2024,” Mudavadei stated.
“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 says the proposal will undergo vetting and public participation before being approved.
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