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Man contests JKIA deal with private firm

Man contests JKIA deal with private firm
Terminal 1A at JKIA, Nairobi. PHOTO/PRINT
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A petitioner yesterday sought a court order to stop the proposed expansion and modernisation of the Jomo Kenyatta International Airport (JKIA) by an India company at a cost of Sh260 billion.

In a petition filed at the Milimani Law Courts, Isack Lango Guyo wants the court to nullify all proceedings and agreement related to the deal between the government and the Indian company, Adani Project Holdings.

Guyo argues that the project lacked public participation and transparency, thereby infringing the constitution.

He wants the court to declare the entire transaction including the privately initiated proposed by Adani Project Holdings and all the attendant processes related thereto as unconstitutional, null and void.

He argues that the project is characterised by severe breaches of the constitution adding that the exclusion of the public from the transaction and the lack of transparency and accountability is a serious violation of the constitution.

Guyo also wants the government to be stopped from pursuing future Public-private Partnerships relating to JKIA or any other strategic national asset “without full compliance with constitutional principles of transparency, accountability and public participation.”

The petition came as Prime Cabinet Secretary Musalia Mudavadi declared that the project will cost Sh260 billion ($2 billion) through a legal framework established under the Public and Private Partnerships (PPP) Act.

JKIA modernisation

Mudavadi admitted that the colossal amount is out of reach for the government due to the current tight fiscal situation, hence the need for a PPP arrangement.

“With the overarching goal of expediting modernisation of JKIA, the government has considered various options of financing the expansion and modernisation of JKIA, given that the projected passenger throughput in the next 30 years is expected to grow to about 30.5 million,” said Mudavadi.

He argued that under the prevailing circumstances, a viable option is through a PPP, which blends private sector investments with public sector funds, adding that this is a preferred financial model for the government, in light of the current budgetary constraints.

He disclosed that Kenya Airports Authority (KAA) received a Privately Initiated Proposal (PIP) from Adani Airport Holdings of India in March 2024, noting that under the PPP Act, private investors are allowed to submit PIPs to invest in national infrastructure priority projects.

And to clear the air on the controversial JKIA takeover, Mudavadi charged that the proposal is currently undergoing the requisite due process, reviews and negotiations in compliance with the PPP Act.

“The 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,” said Mudavadi.

Mudavadi who is the current acting Roads and Transport Cabinet Secretary, explained that the process ensures comprehensive due diligence, a thorough assessment of value for money, financial viability (profitability), technical and functional viability, and safeguarding national interests.

Mudavadi’s assurance comes in the wake of sustained pressure to make the deal between Kenya Airports Authority (KAA) and Adani Airport Holdings- the firm that is to undertake major repair and face-lifting works at the National facility.

Best practices

Yesterday in a statement, Mudavadi disclosed that the government will ensure that all international obligations and regulations, including those with the International Civil Aviation Organisation (ICAO) and others, will be adhered to, adding that JKIA shall be modelled on international best practices to be a top-tier world-class airport.

“We assure the public that every step of this project will undergo rigorous review and scrutiny. The Government is committed to maintaining transparency and accountability throughout the process. We emphasise that JKIA remains a strategic national asset and is not up for sale,” said Mudavadi.

According to Mudavadi, the envisaged goal of upgrading and expanding JKIA is to transform it into a modern, competitive, and efficient hub for air transport and trade, fostering economic growth and solidifying Kenya’s strategic position as a regional and continental leader in multilateral, logistics and financial hub.

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