Gov’t Dismisses JKIA Sale Rumors with Adani

Prime Cabinet Secretary Musalia Mudavadi has clarified that the government has not agreed on terms with Adani Airport Holdings of India regarding the potential sale of Jomo Kenyatta International Airport (JKIA).

Prime cabinet secretary Musalia Mudavadi(photo courtesy)

In a statement, Mudavadi confirmed that the government is currently assessing the proposal from the Indian firm submitted under the Public Private Partnership (PPP) framework in March 2024.

JKIA Upgrade Proposal: Ksh. 260 billion via PPP

The proposal involves upgrading JKIA, which is set to cost Ksh. 260 billion under a PPP, which allows large-scale government projects to be completed with private funding. Through the agreement, private investors recover their funds once the project is complete over a period of time.

Some of the renovations set to be done in JKIA include building a new passenger terminal, refurbishing the existing terminals, constructing a second runway, and enhancing cargo handling facilities.

CS Mudavadi highlighted that the proposal must first undergo stakeholder consultations and receive approval from the National Treasury, Attorney General, and Parliament before any agreement can be finalized.

“For the avoidance of doubt, all terms and conditions of the proposed arrangement are subject to negotiations in accordance with the provisions of the PPP Act, and no terms have been agreed upon as yet,” said Mudavadi.

He also explained that once the terms were agreed upon, safeguards would be implemented. As a result, Kenya’s national interests would be protected, and the private party would be held fully accountable for meeting its obligations.

“As and when the terms are agreed, there shall be appropriate safeguards to ensure that Kenya’s national interests prevail and that the private party is held fully accountable for the performance of its obligations.”

Mudavadi Assures Thorough Evaluation of Firm’s Suitability for National Asset

The Prime CS also mentioned that the government would carry out thorough investigations. This is to determine if the firm is suitable to invest in one of the country’s national assets.

“If the results of the due diligence are not satisfactory and/or the proposal is not approved, the government will have recourse to other options for bridging the infrastructure gap at JKIA, including consideration of alternative proposals.”

Mudavadi’s remarks come amid controversy over the JKIA leasing deal. Despite this, the government has clarified that the airport is not for sale.

President Ruto refutes claims suggesting that he is selling JKIA.

The president also clarified that he has no plans to sell Jomo Kenyatta International Airport. Instead, he explained that he is exploring ways to benefit the country by working with new private investors to improve the airport.

“Am I a mad man? How do you sell a strategic national asset? You have to be insane. We must have the right investment for the airport. What we want to do is work under the PPP program,” President William Ruto said.

Various stakeholders have urged the government to make the deal details public. By doing so, it would increase transparency and help prevent any potential corruption.