Court Halts Implementation of KAA-Adani Deal to Lease JKIA Amid Public Outcry

The Kenyan High Court has blocked the Kenya Airports Authority (KAA) from proceeding with a proposed 30-year deal to lease Jomo Kenyatta International Airport (JKIA) to Adani Airports Holdings, an Indian-based firm. This move follows a legal challenge by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK), who have raised concerns about the proposed public-private partnership (PPP) agreement. The petitioners argue that Kenya should not relinquish control of one of its most critical infrastructural assets to a foreign entity, especially when the country has the capacity to finance the needed upgrades internally.

The proposal by Adani Airports Holdings to lease and manage JKIA for 30 years as part of a PPP aimed at expanding the airport’s infrastructure had stirred significant public opposition. Concerns about transparency, national security, and the potential long-term implications of ceding control over such a vital national resource prompted various stakeholders, including civil society groups, to question the deal. KHRC and LSK jointly filed a petition in court to stop the implementation of the agreement, arguing that the Kenyan government has the means to raise the required KSh 238 billion for the planned improvements without outsourcing the management of the airport to an international firm.

On Monday, September 9, 2024, High Court Judge J. Chigiti issued conservatory orders preventing any party from taking further action on the Adani proposal until the case is heard and determined. This decision was made during the court’s recess, highlighting the urgency of the matter. Judge Chigiti’s ruling is seen as a significant victory for the petitioners, who now have the opportunity to challenge the legality and advisability of the deal through judicial review.

The court directed the Kenya Airports Authority, Adani Enterprises, and other interested parties to file their responses to the petition within five days of receiving the documents. In turn, KHRC and LSK were granted three days to file and serve their substantive application, and both sides were instructed to submit their respective arguments within three days following the initial submissions. The case is scheduled to be mentioned on October 8, 2024, when the court will review the progress made and potentially set a date for judgment.

The involvement of Adani Airports Holdings in the proposed lease of JKIA had raised eyebrows from the outset, given the firm’s controversial history in other international deals and the size of the investment promised. The Indian conglomerate committed KSh 238 billion to modernize and expand JKIA’s infrastructure, a sum that the petitioners argue Kenya could easily secure from alternative sources. Both KHRC and LSK have maintained that this sum should not justify ceding operational control of the country’s busiest airport to a foreign entity.

The case has brought to light broader concerns about the management of Kenya’s key infrastructure assets. JKIA, being one of the largest and busiest airports in East Africa, is not only a vital hub for international travel and trade but also a symbol of national sovereignty. Many critics of the deal fear that handing over its operations to an external company could lead to loss of revenue, reduced local employment opportunities, and potential security risks.

The proposed lease also sparked debates about the transparency of the tendering process and whether proper channels were followed to ensure the best interests of the Kenyan people were being considered. Some industry insiders have questioned why a foreign company was favored for such a strategic asset, especially given that there are local firms with the expertise to manage and expand airport operations.

On the other hand, proponents of the deal had argued that a PPP with Adani would bring in the necessary technical expertise and financial backing to ensure that JKIA remains competitive on the global stage. They pointed out that airports around the world often enter into partnerships with private companies to finance large-scale infrastructure projects. However, the overwhelming opposition from the public and various civil society groups, coupled with the court’s conservatory orders, have cast doubt on the future of the proposed agreement.

The High Court’s decision to temporarily halt the KAA-Adani deal has provided a breathing space for those who are opposed to the arrangement, giving them time to present their case in court. The legal process is expected to be watched closely by both local and international observers, given the prominence of JKIA in the region and the potential implications of the court’s ruling on future PPP projects in Kenya.

As the case progresses, the public debate over the balance between foreign investment in infrastructure and maintaining national control over key assets will continue to unfold. For now, the implementation of the Adani proposal remains in limbo, pending the outcome of the judicial review filed by KHRC and LSK.