Govt Clears Air on Controversial JKIA Deal with Indian Company

The Kenya Airports Authority (KAA) has clarified reports regarding the sale of Jomo Kenyatta International Airport (JKIA).

In a statement on July 24, KAA acting Managing Director Henry Ogoye emphasized that JKIA is a strategic national asset built in 1978, and its aging infrastructure poses a threat to Kenya’s regional competitiveness.

According to him, the Cabinet approved the JKIA Medium Term Investment Plan, which includes upgrading the passenger terminal building, runway, taxiway, and apron.

The Authority explained that the investment required is significant and cannot be funded under the current fiscal constraints without private funding.

Therefore, he explained- the Airports Authority received an investment proposal under the Public Private Partnerships Act 2021 from Adani Airport Holdings Limited to facilitate the required investment.

In his statement, Adani plans to invest in a new passenger terminal building, a second runway, and the refurbishment of existing facilities at JKIA.

However, the KAA CEO noted that the proposal will be subjected to technical, financial, and legal reviews, alongside requisite due processes in compliance with the Public Private Partnerships Act 2021.

According to the Authority, the Project Agreement will be preceded by stakeholder engagement, National Treasury approval, Attorney General clearance, and Cabinet approval.

Agreement not Affect JKIA Employees

Ogoye said the agreement will not affect JKIA employees and assured the country that the expansion will create more business opportunities.

“I wish to assure our staff that no jobs are at risk. I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits,” KAA said.

Also Read: Mudavadi Addresses Reports of JKIA Being Sold

Mudavadi’s Clarification

This clarification follows a statement by Prime Cabinet Secretary and CS for Diaspora and Foreign Affairs, Musalia Mudavadi, asserting that JKIA is not for sale.

While appearing before the Parliamentary Committee on July 22, Mudavadi dismissed the reports, stating that the airport can only be sold through a public process and after parliamentary endorsement.

“Let me discount immediately that the airport, the Jomo Kenyatta International Airport, is not on sale. This is a public asset; it is a strategic asset,” Mudavadi stated. “And if it was going to be sold, you can only do it after a full public process that parliament endorses,” he added.

However, the PCS emphasized the need to modernize JKIA, citing previous plans for a new terminal that never materialized due to contractual and litigation issues.

“You remember there was a greenfield terminal, but it never took off. The contractual engagement had its challenges. Yeah. There was litigation, it stalled,” he noted.

Also Read: Senator Demands Disclosure of JKIA Leasing Contract with Indian Company

Directives to KAA

He directed KAA to analyze its investment program carefully and ensure transparency during the expansion of the second terminal especially if it involves a Public-Private Partnership (PPP) arrangement.

“Make sure that everything is transparent so that during the expansion process of the second terminal, if it is under PPP arrangement, let it be done properly, thoroughly through the legal process so that everybody knows what is going on,” Mudavadi said.

There have been claims online for over a week now that the Airport had been leased to a foreign entity.

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