NAIROBI, Kenya – Members of Parliament have demanded a forensic audit into the controversial deal between the Kenya Airports Authority (KAA) and India’s Adani Holdings over the proposed $1.83 billion (Sh230 billion) upgrade of Jomo Kenyatta International Airport (JKIA).
The Public Investments Committee (PIC) on Commercial Affairs and Energy, led by Chair David Pkosing, raised concerns over how Adani Holdings quickly became involved in the project, just two weeks after a Spanish consultant, ALG, released a feasibility report.
The committee has directed the Auditor General to investigate the circumstances under which Adani was brought on board and to ascertain whether due process was followed in identifying the private sector partner.
“It is the advice of the committee that you don’t do anything with Adani until this committee reports this matter to Parliament,” warned Pkosing, who emphasized that KAA’s acting CEO, Henry Ogoye, would be held personally accountable for any breaches of the directive.
The MPs have instructed that all further engagements with Adani Holdings be halted while the audit is conducted, and court orders related to the deal are respected. A special audit report is expected by the end of October.
The forensic audit will focus on various aspects of the deal, including how the $1.83 billion figure for the airport’s upgrade was determined.
The investigation will also look into the scope of the proposed upgrades, which include building a new terminal and a second runway.
Lawmakers also want to evaluate whether the Privately Initiated Investment Proposal (PIIP) used to bring Adani on board was the most cost-effective option for the country.
“The question we seek information on is whether there is an alternative way to save people money instead of the PIIP route,” Pkosing said.
The audit will further explore the potential impact on smaller airports and aerodromes that depend on JKIA for survival, as well as the implications of the deal for KAA staff and the national airline.
The committee’s concerns stem from the speed at which Adani Holdings joined the project, suggesting possible insider dealings.
In his defense, Ogoye explained that JKIA urgently requires upgrades due to overstretched infrastructure.
“Our current capacity is for 7.5 million passengers, but last year we handled 8.6 million,” he said, noting that the airport’s facilities are lagging behind, particularly in cargo handling.
However, MPs questioned why KAA, which reports annual profits, allowed the deterioration of critical infrastructure.
“You collect revenue and report profits—why not plough it back to improve technology and equipment?” asked PIC vice-chair Lilian Gogo.
Further complicating matters, the MPs raised questions about a $50,000 (Sh6.4 million) payment made by Adani Holdings before any formal agreement was signed.
Ogoye defended the payment, citing legal requirements that bidders must pay a fee once their proposal is evaluated.
However, this did little to quell MPs’ concerns about transparency and public involvement in the process.
The Public Investments Committee (PIC) on Commercial Affairs and Energy, led by Chair David Pkosing, raised concerns over how Adani Holdings quickly became involved in the project, just two weeks after a Spanish consultant, ALG, released a feasibility report.
The committee has directed the Auditor General to investigate the circumstances under which Adani was brought on board and to ascertain whether due process was followed in identifying the private sector partner.
“It is the advice of the committee that you don’t do anything with Adani until this committee reports this matter to Parliament,” warned Pkosing, who emphasized that KAA’s acting CEO, Henry Ogoye, would be held personally accountable for any breaches of the directive.
The MPs have instructed that all further engagements with Adani Holdings be halted while the audit is conducted, and court orders related to the deal are respected. A special audit report is expected by the end of October.
The forensic audit will focus on various aspects of the deal, including how the $1.83 billion figure for the airport’s upgrade was determined.
The investigation will also look into the scope of the proposed upgrades, which include building a new terminal and a second runway.
Lawmakers also want to evaluate whether the Privately Initiated Investment Proposal (PIIP) used to bring Adani on board was the most cost-effective option for the country.
“The question we seek information on is whether there is an alternative way to save people money instead of the PIIP route,” Pkosing said.
The audit will further explore the potential impact on smaller airports and aerodromes that depend on JKIA for survival, as well as the implications of the deal for KAA staff and the national airline.
The committee’s concerns stem from the speed at which Adani Holdings joined the project, suggesting possible insider dealings.
In his defense, Ogoye explained that JKIA urgently requires upgrades due to overstretched infrastructure.
“Our current capacity is for 7.5 million passengers, but last year we handled 8.6 million,” he said, noting that the airport’s facilities are lagging behind, particularly in cargo handling.
However, MPs questioned why KAA, which reports annual profits, allowed the deterioration of critical infrastructure.
“You collect revenue and report profits—why not plough it back to improve technology and equipment?” asked PIC vice-chair Lilian Gogo.
Further complicating matters, the MPs raised questions about a $50,000 (Sh6.4 million) payment made by Adani Holdings before any formal agreement was signed.
Ogoye defended the payment, citing legal requirements that bidders must pay a fee once their proposal is evaluated.
However, this did little to quell MPs’ concerns about transparency and public involvement in the process.
