State seeks new funding model for JKIA after flop
The government is looking for a new investor to enable it to expand and modernize Jomo Kenyatta International Airport (JKIA), days after President William Ruto cancelled the Adani deal.
Treasury Principal Secretary Chris Kiptoo said that it will be impossible to mobilize the Sh260 billion required for the expansion of the airport.
Appearing before the Public Accounts Committee (PAC) to respond to audit queries raised by the Auditor General Nancy Gathungu, Kiptoo said that the only way for the government to implement huge projects is to enter into Public Private Partnerships (PPP).
He said: “Where we are as a country, we have a very thin and tight fiscal space. Take for example the modernization of JKIA when it was designed in 1978 it was designed for 7 million passengers and cargo and now, we are 9 million and this is a strategic hub. It is important that we modernize, and so we cannot raise money through the budget.”
Transparent manner
Kiptoo however assured the MPs that this time round, they will carry out the exercise in an open and transparent manner and will do public participation before they close on the deal.
He said: “PPP is the way to go. We will still progress with it but I think this time we will apply a very competitive process to see whether apart from, apart from Adani who else has capabilities.”
His sentiments come hardly two weeks after President William Ruto announced the cancellation of two major infrastructure projects including the expansion of Jomo Kenyatta International Airport (JKIA) and the KETRACO energy transmission project, following revelations of potential integrity issues.
Speaking during the State of the Nation address, Ruto highlighted the significance of combating corruption, calling it a key priority for his administration.
Cancelled contract
He directed the Ministry of Transport and the Ministry of Energy and Petroleum to act immediately, cancelling both the ongoing JKIA procurement process and the KETRACO transmission public-private partnership (PPP) deal.
The president emphasized that his decision was guided by credible information from investigative agencies and international partners, aligning with Kenya’s constitutional principles of transparency and accountability.
He said: “Of the many difficult assignments I have undertaken, this fight against corruption is one I now take on with resolve going forward. Let this serve as notice to all. I have stated in the past, and I now repeat today, that in the face of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action.”
And in Parliament, MPs told Kiptoo to ensure that the new deal to be done in a transparent and open manner.
Funyula MP Wilberforce Oundo Mudenyo who was the acting chairperson told Kiptoo to ensure that the deal is done in a transparent and open manner.
He said: “Most of us Kenyans are for PPP but we want transparency and accountability. Kenyans are good people and go to church and are very alert on what is happening. Let us do this process in a competitive manner.”
Bura MP Kuno Yakub told Kiptoo to ensure that they do a proper background check, carry out feasibility studies as well as engage in public participation before they close on the deal.
He said: “we agree with the government in the sense of the small fiscal space that we are in. But on this we are aware that Kenyans were not happy with this Adani thing and this came to pass.”