Prime Cabinet Secretary Musalia Mudavadi has issued a fresh statement addressing the contentious Jomo Kenyatta International Airport (JKIA) modernization project involving Adani Airports Holdings Limited.
The statement sought to clarify the government’s position and provide reassurances amidst public concern.
On July 30, 2024, Mudavadi emphasized the significance of JKIA as a “strategic national asset” and reaffirmed that “JKIA is not for sale.”
He highlighted the government’s reliance on Public-Private Partnerships (PPPs) to drive infrastructure projects without burdening the national budget.
“The Government has been implementing financial reforms aimed at spurring economic growth while easing off pressure from the Exchequer,” he said.
JKIA-Adani Deal
Addressing the proposal from Adani Airports Holdings Limited, Mudavadi assured that the project is still undergoing rigorous due process.
“The proposal is currently undergoing the requisite due process, reviews, and negotiations in compliance with the PPP Act,” he said.
He underlined that no terms have been agreed upon yet and that any eventual agreement will include “appropriate safeguards to ensure that Kenya’s national interest prevails.”
The press statement also highlighted the government’s commitment to transparency and accountability.
“We reaffirm that the proposed expansion and modernization of JKIA will be conducted in strict adherence to our Constitution and, specifically, in accordance with the legal frameworks established under the PPP Act,” Mudavadi stated.
He also assured those international regulations, including those from the International Civil Aviation Organization (ICAO), would be adhered to.
Mudavadi on JKIA Challenges
Mudavadi outlined the extensive challenges facing JKIA, constructed in 1978, which has seen its infrastructure deteriorate over the past 45 years.
Also Read: Onyonka Reveals New Details of JKIA Deal Hours After Ruto’s Remarks
He noted that the airport is operating beyond its capacity, having handled over 8.6 million passengers last year despite being designed for 7.5 million.
“Increased economic activity, a rejuvenation of tourism, and the implementation of the Visa-Free regime have contributed to a surge in passenger numbers,” he explained.
The Prime CS detailed the urgent need for infrastructure upgrades at JKIA, including a new passenger terminal, a second runway, enhanced cargo facilities, and modernized passenger amenities.
Mudavadi pointed to the findings of a feasibility study which endorsed a PPP framework for the expansion, stating, “A viable option, which is in line with global best practice, is through a PPP, which blends private sector investments with public sector funds.”
“We emphasize that JKIA remains a strategic national asset and is not up for sale,” he reaffirmed.
Earlier Remarks on JKIA
Mudavadi had earlier addressed the reports about Jomo Kenyatta International Airport (JKIA) being sold.
Speaking on Tuesday July 23 before a Parliamentary Committee, Mudavadi clarified that the airport is not for sale.
“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.
Mudavadi also acknowledged the need for modernization at JKIA, mentioning 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.
KAA on Mass Firing
The Kenya Airports Authority (KAA) had also earlier 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.
He added the Cabinet approved the JKIA Medium Term Investment Plan, which includes upgrading the passenger terminal building, runway, taxiway, and apron.
Also Read: Why Gachagua is the Biggest Casuality in Ruto’s New Government
Ogoye further 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.
Ruto on JKIA being Sold
Speaking at a town hall meeting in Mombasa on Sunday, July 28, President William Ruto dismissed claims that the airport was being sold.
He emphasized that the long-overdue upgrade of JKIA could only be achieved through a Public-Private Partnership (PPP).
Ruto explained that this approach necessitates finding the right investor to enhance this crucial national asset for the benefit of Kenyans.
“Let’s be honest, Kenyans. The airport we have in Nairobi is essentially a temporary structure made of canvas, set up nearly seven years ago. Meanwhile, Ethiopia and Rwanda have brand-new airports, Ruto said.
“This is why we need to collaborate with investors to build a new airport in Nairobi. Some people say I want to sell the airport. Do they think I’m crazy? How can you sell a strategic national asset?” he added.
“We need the right investment for the airport. Our goal is to leverage PPPs, combining private sector funds with public sector investment, to create a win-win situation,” said Ruto.
Follow our WhatsApp Channel for real-time news updates!
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C
