The government has announced that it has not agreed on terms with Adani Airport Holdings of India in the firm’s bid to manage Jomo Kenyatta International Airport (JKIA).
In a statement on Monday, July 29, Prime Cabinet Secretary Musalia Mudavadi said the government is still reviewing the proposal Adani submitted in March 2024 under the Public Private Partnership (PPP).
In the proposal, Adani Group sought to run JKIA for a period of 30 years, starting in 2025.
While at it, the multinational conglomerate proposed refurbishing the airport at its own cost of KSh 260 billion.
The refurbishment will include building a new passenger terminal, refurbishing the existing terminals, constructing a second runway and enhancing cargo handling facilities.
If cleared to operate the airport, the company estimated its first-year (2025) revenue at KSh 21.3 billion out of which KSh 6.2 billion will be for the Kenyan government.
In 2030, the Adani Group proposed a revenue estimate of KSh 37.9 billion out of which KSh 6.8 billion will go to the government.
However, Mudavadi said before an agreement is signed, the proposal will have to undergo stakeholder engagement and be approved by the National Treasury, the Attorney General and the parliament.
“All terms and conditions of the proposed arrangement are subject to negotiations in accordance with the provisions of the PPP Act and no terms have been agreed upon as yet.
As and when the terms are agreed, there shall be appropriate safeguards to ensure that Kenya’s national interests prevail and that the private party is held fully accountable for the performance of its obligations,” said Mudavadi.
Mudavadi further said the government will conduct extensive investigations to determine the Adani Group’s suitability to run the airport.
“If the results of the due diligence are not satisfactory and/or the proposal is not approved, the government will have recourse to other options for bridging the infrastructure gap at JKIA, including consideration of alternative proposals,” he added.
