Kisii County Senator Richard Onyonka has called on the Senate Standing Committee on Transport to provide Kenyans with detailed information regarding the leasing of Jomo Kenyatta International Airport (JKIA) by a private company.
Onyonka alleged that the Kenya Airports Authority (KAA) entered into a Build, Operate, and Transfer (BOT) agreement with an Indian Company Adani Commercial, a private firm, for the leasing of JKIA.
“I rise, pursuant to Standing Order 53 (1), to seek a Statement from the Standing Committee on Roads and Transportation on the leasing of Jomo Kenyatta International Airport under Build, Operate and Transfer’ model of Public Private Partnership by a private company,” he said.
The Senator noted that the proposal includes a fixed concession fee, which will be outlined in the concession agreement, with a tenure of 30 years.
“The assets developed through capital expenditure by the company will be transferred to Kenya Airports Authority (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 and equity of 18%,” Onyoka added.
According to Onyonka, the company will be entitled to set the charges it levies from airlines and other users for its services at JKIA among other proposed terms of the concession.
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Senator Calls for Disclosure of JKIA Leasing Contract
Senator Onyonka demanded that the committee provide contract details for the JKIA leasing project, including information on the ownership of ADANI Commercial and the processes undertaken to identify and award the lease.
He also requested details about the contract between the Kenya Airports Authority (KAA) and the transaction advisor, ALG, a Spanish firm.
This includes ownership information, the processes used to identify and award the contract for developing an Air Transport Policy in Kenya, and the subsequent payment of Ksh. 160 million to ALG.
Additionally, he asked the committee to furnish the Senate with the notice of meeting, agenda, minutes, and resolutions from the KAA board meeting held on July 15, 2024.
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He also requested the committee members to state the reasons for the government’s plans to avail free land to the company to build a city side development on public land which may lead to land issues in areas surrounding JKIA.
Finally, he urged committee members to explain the government’s plans to provide free land to the company for a city-side development on public land, which may lead to land issues in areas surrounding JKIA.
JKIA has long faced criticism over issues such as leaking roofs, inadequate drainage, and lack of shelter, which have been particularly problematic during the onslaught of heavy rainfall in early March.
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