
The Kenya Airports Authority (KAA) has addressed the public outcry and protests regarding the potential involvement of a private company in the operations of Jomo Kenyatta International Airport (JKIA).
JKIA is a national asset built in 1978, and according to KAA, the airport has been facing challenges due to its aging infrastructure, posing a threat to Kenya’s regional competitiveness.
Who is Adani?
According to KAA Acting Managing Director and CEO Henry Ogoye, the state received an investment proposal from Indian-based, Adani Airport Holdings Limited.
Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad. Founded by Gautam Adani in 1988 as a commodity trading business.
The Group’s businesses include sea and airport management, electricity generation and transmission, mining, natural gas, food, weapons, and infrastructure.
More than 60% of its revenue is derived from coal-related businesses.
Also Read: Kenya Airports Authority Responds to JKIA Privatization Concerns Amid Protests
At its 2022 peak, Adani was the largest Indian conglomerate, with a US$206 billion market capitalization.
#OccupyJKIA Protests
The revelation comes after thousands of Kenyans unsuccessfully marched to the airport on July 23, demanding clarity on the situation.
Ogoye said the Cabinet approved the JKIA Medium Term Investment Plan, which includes significant upgrades to the passenger terminal building, runway, taxiway, and apron.
“Given the current fiscal constraints, the necessary investment cannot be met without private funding,” said Ogoye.
Adani Airport Holdings Limited will bd a major airport operator, under the Public Private Partnerships Act 2021.
The proposal includes the construction of a new passenger terminal building, a second runway, and the refurbishment of existing facilities at JKIA.
Ogoye said the proposal will undergo rigorous technical, financial, and legal reviews, along with the necessary due processes in compliance with the Public Private Partnerships Act 2021.
This includes stakeholder engagement, approval from the National Treasury, clearance from the Attorney General, and final approval from the Cabinet.
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