Kenya Airports Authority (KAA) has acknowledged receiving an investment proposal from Adani Airport Holdings Limited aimed at addressing the ageing infrastructure of Kenya’s busiest airport, which was established in 1978.
KAA Acting CEO Henry Ogoye emphasized that the country’s ageing infrastructure poses a threat to its regional competitiveness, necessitating a comprehensive overhaul.
“The Cabinet approved the JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway and apron,” said KAA in a media statement on Wednesday.
Ogoye explained that the significant investment required for these upgrades exceeds current fiscal constraints, prompting consideration of private funding through partnerships under the Public Private Partnerships Act 2021. He assured that the partnership with Adani would undergo rigorous technical, financial, and legal scrutiny to ensure compliance with the law.
Responding to concerns raised by stakeholders, KAA assured employees and the airport business community that there would be no job losses due to the planned upgrades. They also highlighted that the expanded facilities would generate new business opportunities and benefits for airport operators and the wider community.
Meanwhile, Prime Cabinet Secretary Musalia Mudavadi addressed fears in the National Assembly about the government’s intentions regarding the airport.
“The airport is not on sale. This is a public asset, a strategic asset. If it was going to be sold, you can only do it after a full public process that parliament endorses,” Mudavadi clarified.
Instead of selling, Mudavadi emphasized plans to modernize the airport and construct a new terminal, emphasizing transparency and adherence to legal processes.
Regarding public concerns, Kisii Senator Onyoka raised alarms about purported foreign ownership of the airport, questioning the terms of a reported 30-year contract with undisclosed foreign entities.
“We are signing off our airport to be run by a private company for 30 years and after the contract expires, they will keep the equity of our airport at the rate of 18 per cent. Why would anyone sign such an agreement?” Senator Onyoka queried, referencing an unnamed French whistleblower.
