NAIROBI, Kenya – The Kenya Airports Authority (KAA) has finally opened up over the alleged sale of the Jomo Kenyatta International Airport (JKIA).
KAA has in the recent past come under pressure to explain how it entered into an alleged private deal to lease JKIA to an Indian firm, Adani Airport Holdings Limited.
But in a statement, KAA Managing Director Henry Ogoye said that JKIA is a strategic national asset built in 1978 that requires a facelift.
“It’s aging infrastructure is a threat to our regional competitiveness. The Cabinet approved the JKIA Medium Term Investment Plan covering the up grade of the passenger terminal building, runway, taxiway and apron,” said Ogoye.
According to Ogoye, the attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding.
“KAA received an investment proposal under the Public Private Partnership Act 2021 from the Adani Airport Holdings Limited, a key airport operator, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA,” the statement seen by Y News further reads.
Ogoye further revealed that the proposal will be subjected to technical, financial and legal review alongside requisite due processes in compliance with the Public Private Partnerships Act 2021.
“The Project Agreement will be preceded by stakeholder engagement, the National Treasury approval, the Attorney General clearance and the Cabinet approval,” said the CEO.
He further assured KAA staff that no jobs are at risk.
“I also wish to assure the airport business community and operates that the expanded facility will create additional business opportunities and attendant benefits,” Ogoye explained.
This comes when Kisii Senator Richard Onyonka petitioned the Senate Committee on Roads and Transport to issue a statement on how the purported deal was signed with Adani to operate JKIA under a build, operate, and transfer model.
“It is reported that KAA entered an agreement with Adani Commercial a private company to “build operate and transfer’ to lease JKIA. The purpose is to pay a fixed concession fee as will be agreed in the concession agreement,” he said in a request to the Senate Speaker Amason Kingi.
Onyonka went on:
“The tenure of the model will be 30 years, where the assets developed through capital expenditure by the company will be transferred to KAA at the expiry of the concession term at a value determined and agreed by the parties, which value shall be structured to grant the company an equity of 18 pc,” he added.
Onyonka further claimed that as part of the deal, Adani would be entitled to set the charges it levies from airlines and other users for its services at JKIA.
