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JKIA-Adani: How Multibillion Projects in Neighboring Countries Are Piling Pressure on Kenya

September 28, 2024
Reading Time: 5 mins read
Terminals At Jomo Kenyatta International Airport. Photo/Business Daily

Terminals at Jomo Kenyatta International Airport. PHOTO/Business Daily

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As the controversial, proposed leasing of the Jomo Kenyatta International Airport (JKIA) to Adani Group continues to evoke reactions, Kenya is in a competitive race with its neighbors to develop top-notch infrastructure.

Ethiopia is designing what is expected to become the continent’s largest airport at a cost of US $5 billion, which is approximately to Ksh645 billion. Ethiopian Airlines competes with Kenya Airways in the airline industry in Africa, winning various awards. 

Rwanda, on its part, is constructing a new airport for an estimated $2 billion (Ksh 258 billion) in partnership with Qatar. Rwanda is a country that has quickly developed in various sectors under the leadership of Paul Kagame, placing the country on the map in East Africa and the world. 

Kenya is a leading destination in tourism around the world and hosts headquarters of major organizations like the United Nations Environment Programme (UNEP). 

But pressure is piling on the country to upgrade its infrastructure to compete with its neighbors and to meet leading world standards in line with its goal to remain a key gateway to the region.

How Multibillion Projects In Neighboring Countries Are Piling Pressure On Nairobi
Jomo Kenyatta International Airport entrance. Photo/Citizen Digital

In addition to the investments in Rwanda’s and Ethiopia’s airports, Tanzania is working with Indian Conglomerate to enhance the capacity of the Dar es Salam Port in a 30-year concession deal.

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These, coupled with modernization of railways continue to pose competition for Kenya in its quest to remain a transport hub in the region. 

JKIA challenges expose investment gaps

Under the leadership of the former Transport Cabinet Secretary Kipchumba Murkomen, JKIA hit headlines for leaking roofs that affected operations and exposed the inefficiencies in Kenya’s busiest airport.

The incidents saw Murkomen come under pressure to ensure the airport is upgraded to international standards considering its vital role in the Kenyan economy and the region. 

Kenyan government has been under fire over lack of transparency in the proposal to lease JKIA to the Indian Adani Group company. The matter left Kenyans and the political class outraged, in addition to airport workers striking over the proposed plan.

The proposed leasing of JKIA came to the limelight following the Gen Z protests that took place in June and July 2024. 

Even as the leasing of JKIA continues to raise eyebrows, the Adani Group has been embroiled in allegations of scandalous deals, attracting criticism from various sections of society.

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Adani Troubles

For example, in India, which is Adani Group’s base, the company is under a court-mandated probe after Hindenburg Research raised questions over its accounting and audit reports.

Adani has also been mentioned in the media reports to be under Swiss investigations over allegations of money laundering. It is reported that Swiss authorities froze  US $310 million allegedly linked to a front man of Adani group.


Also Read: Adani-JKIA Deal Whistleblower Hits Back at Senator Cheruiyot After Demand Letter


At home, Indian National Congress General Secretary Jairam Ramesh in a statement on September 3, 2024, raised concerns following protests from aviation workers in Kenya over the JKIA takeover, saying it could affect government relations countries. 

“This is a matter of grave concern for India, because the non-biological prime minister’s friendship with Mr. Adani is now globally well known. The protests can therefore easily convert into anger against India and the Indian Government,” said Ramesh.


Also Read: Adani Listed Among World’s Best Companies Amid Controversy Over Frozen Ksh40 Billion


Even as the leasing of JKIA continues to raise eyebrows, Adani has termed the allegations brought against it as baseless.

It remains to be seen whether the JKIA-Adani deal will proceed or if the government will consider a different approach to upgrading its airports. 

Follow our WhatsApp Channel for real-time news updates!

https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C

How Multibillion Projects In Neighboring Countries Are Piling Pressure On Nairobi
A Kenya Airways plane on the tarmac. Photo/Kenya Airports Authority.
Tags: InfrastructureNairobiProjects

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