The Kenyan government has clarified that no formal agreement has been signed with India’s Adani Group concerning the proposed Ksh. 260 billion expansion of Jomo Kenyatta International Airport (JKIA).
The proposed deal, which involves a plan to modernize and expand JKIA, Kenya’s largest and busiest airport, has sparked considerable controversy and public concern. The Adani Group, an Indian multinational conglomerate with extensive experience in managing airports, submitted a “Privately Initiated Proposal” (PIP) under Kenya’s Public-Private Partnership (PPP) Act. The proposal aims to increase the airport’s capacity, improve facilities, and strengthen JKIA’s position as a regional aviation hub.
However, the deal has been met with skepticism from both the public and aviation workers, partly due to Adani Group’s controversial track record in India. The conglomerate, owned by billionaire Gautam Adani, has faced numerous allegations over the years, including environmental violations, improper land acquisitions, and unfair labor practices. These concerns have fueled fears among Kenyans that a similar approach could be taken in Kenya, potentially affecting local communities, the environment, and worker rights.
The workers strike left many passengers stranded as no flights were landing or taking off for the better part of the day. Photo/Courtesy
During a press briefing at JKIA, Transport Cabinet Secretary Davis Chirchir acknowledged the government’s failure to communicate effectively about the deal but emphasized that no binding contract had been made. He admitted there was “a lapse of communication” regarding the privately initiated investment proposal from Adani Group.
The briefing followed a 24-hour strike by aviation workers, represented by the Kenya Aviation Workers Union (KAWU), which caused major disruptions at JKIA and other airports around Nairobi, leaving many travelers stranded. KAWU, concerned about the lack of transparency and potential impact on jobs, staged the strike to protest the proposed deal. Workers fear that the involvement of Adani, given its past controversies, could lead to job losses, reduced benefits, and diminished working conditions.
Chirchir explained that, under the PPP Act, private investors can submit proposals for investment, with negotiations focusing on terms like return on equity and debt-equity ratios. He mentioned that more details about the deal would be disclosed in court, where a related case is currently being heard. “This presents a good opportunity to present all the documents to the court in the form of public participation,” Chirchir added.
He also stressed that the government intends to use public participation to ensure transparency, saying, “All documents will be made public, helping the government engage with citizens and demonstrate how the PPP framework is being used to develop infrastructure like roads, airports, and schools.”
The proposal has also drawn criticism for the government’s perceived lack of transparency in handling the matter. Many Kenyans feel excluded from the decision-making process, raising questions about the fairness of a deal that could have far-reaching impacts on national assets. Critics argue that without full public disclosure and scrutiny, the proposal could lead to a loss of Kenyan control over a critical piece of infrastructure.
After the strike was resolved, the government agreed to provide KAWU with key documents related to the Adani proposal. According to a joint statement by the Kenya Airports Authority (KAA), Kenya Airways, and KAWU, the union will review the documents within ten working days and raise any concerns to be addressed in discussions with the government, Kenya Airways, and KAA.
The statement, read by COTU Secretary General Francis Atwoli, also outlined that each party in the negotiations would be represented by two people and that no final agreement would be signed without KAWU’s approval. “The government and the Kenya Airports Authority shall not finalize any agreement or append their signatures without concurrence with KAWU,” it said.
Government Spokesperson Isaac Mwaura reiterated that no agreement had been signed. “The Adani proposal is still under consideration,” Mwaura said, explaining that in March 2024, the Kenya Airports Authority received a Privately Initiated Proposal (PIP) from Adani Airport Holdings under the PPP Act. “This proposal is undergoing due process, including stakeholder engagement, National Treasury approval, and Cabinet clearance, as required by the PPP Act 2021. No terms have been agreed upon, and all aspects are subject to negotiation,” Mwaura stated.
The government has reassured the public that transparency will be maintained throughout the process, and any future developments will be communicated clearly, aiming to alleviate concerns and build trusti n the proposed project.
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