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Prime Cabinet Secretary Musalia Mudavadi has clarified that the government has not yet reached an agreement with Adani Airport Holdings of India, amid rumors suggesting plans to sell Jomo Kenyatta International Airport (JKIA) to the private investor. In a statement on Monday, Mudavadi confirmed that the government is currently reviewing a proposal submitted by the Indian firm under the Public-Private Partnership (PPP) framework in March 2024.
The proposal includes upgrading JKIA at an estimated cost of Ksh.260 billion through a PPP arrangement, which allows large-scale government projects to be financed by private funds. Under this arrangement, private investors recoup their investment over time once the project is completed.
The planned upgrades for JKIA include constructing a new passenger terminal, refurbishing existing terminals, building a second runway, and enhancing cargo handling facilities. Mudavadi emphasized that the proposal must undergo stakeholder engagement and receive approval from the National Treasury, the Attorney General, and Parliament before any agreement is finalized.
“For clarity, all terms and conditions of the proposed arrangement are subject to negotiations in line with the PPP Act, and no terms have been agreed upon as yet,” said Mudavadi.
“When the terms are finalized, appropriate safeguards will be in place to ensure that Kenya’s national interests are protected and that the private party is fully accountable for fulfilling its obligations.”
Mudavadi also stated that the government will conduct thorough investigations to assess the suitability of the firm as an investor in one of the country’s national assets.
“If the due diligence results are unsatisfactory or the proposal is not approved, the government will consider other options to address the infrastructure needs at JKIA, including exploring alternative proposals.”
These remarks come amid controversy surrounding the JKIA leasing deal, despite the government clarifying that the airport is not for sale.
“Am I a madman? How can you sell a strategic national asset? You have to be insane. We must secure the right investment for the airport. What we intend to do is work under the PPP program,” President William Ruto stated during a town hall discussion in Mombasa on Sunday.
There have been questions about whether the government advertised the tender, how Adani Holdings became aware of the opportunity to submit a proposal, and whether other companies participated in the tender process. Critics have also questioned whether the selection of Adani Holdings was conducted through a fair process. Various stakeholders have called on the government to make the details of the deal public to enhance transparency and prevent any potential corruption.
Dj Vnyash
