Court Blocks Proposed JKIA Lease to Adani Airport Holdings Pending Judicial Review

The High Court has granted the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) permission to file for judicial review, challenging the Kenya Airports Authority’s (KAA) decision to lease Jomo Kenyatta International Airport (JKIA) to Adani Airport Holdings. The court has also issued a stay, prohibiting any implementation of the privately initiated Adani proposal over JKIA until the conclusion of the case. The matter is scheduled for mention on October 8, 2024, to secure a judgment date.

The decision to lease JKIA, one of Africa’s busiest airports currently handling 10 million travelers annually, has sparked significant debate and opposition. The proposal by Adani Airport Holdings, an Indian conglomerate, aims to modernize JKIA through a 30-year lease agreement with KAA. However, this proposal has faced criticism from various quarters, including the Institution of Engineers of Kenya (IEK), which has raised concerns about the priorities outlined in the proposal.

Concerns from the Institution of Engineers of Kenya

The IEK, a key stakeholder in the infrastructure and engineering sector, has voiced its disapproval of some of the proposals made by Adani Airport Holdings. According to Shammah Kiteme, President of IEK, the proposals do not adequately address the immediate needs of JKIA, which is projected to handle 23 million travelers during the proposed 30-year lease period up to 2054.

Kiteme emphasized the importance of assessing whether the involvement of external parties is necessary for all aspects of JKIA’s modernization. “While external expertise and investment can be beneficial, it is essential to evaluate whether the involvement of external parties is necessary for all aspects of modernization. Local engineers and companies could handle many technical aspects, ensuring that the knowledge and benefits remain within the country,” said Kiteme.

The IEK’s critique is centered on Adani’s focus on the City Side Development (CSD), which includes the construction of hotels and malls on a 30-acre plot near the airport. According to IEK, this focus on commercial real estate development does not address the immediate operational challenges facing JKIA, such as enhancing passenger handling capacity and improving airside facilities. Kiteme noted that the construction of hotels and malls is set to start almost immediately after the lease is signed, which he argued is not a priority for the airport.

Adani’s Modernization Plan for JKIA

Adani Airport Holdings’ proposal outlines a three-phased approach to modernizing JKIA. The first phase, scheduled for 2024-2028, includes constructing a new terminal with a capacity of 8 million travelers, building aprons and taxiways, refurbishing current terminals, and developing a four-lane road to simplify linking the two terminals. Additionally, the plan includes constructing a grade car park, a utility block, and a City Side Development (CSD) that consists of multiple hotels.

The second phase, from 2029-2035, focuses on expanding the main terminal building to handle 8 million passengers, improving current taxiways, constructing remote aircraft parking stands, and equipping the airside facility with a CAT I system. The third phase, planned for 2046-2054, aims to further expand the airport’s infrastructure in line with projected passenger growth.

Despite the ambitious plans outlined by Adani, IEK and other stakeholders remain concerned that the focus on commercial developments, such as hotels and malls, may overshadow the critical infrastructure upgrades needed to address JKIA’s immediate operational challenges. The debate continues as stakeholders await the court’s decision on the judicial review, which will be pivotal in determining the future of JKIA’s modernization and management.

The outcome of this case will have significant implications not only for JKIA but also for the broader landscape of infrastructure development and foreign investment in Kenya. As the court proceedings progress, the focus will remain on balancing the need for modernization with the imperative to prioritize the country’s interests and capabilities.