Adani Airport Holdings Limited, a subsidiary of the Indian conglomerate Adani Group, is reportedly in discussions with the Kenyan government to lease 30 acres of land near Jomo Kenyatta International Airport (JKIA). The proposed lease, part of a larger, ambitious plan, aims to create a state-of-the-art airport city featuring hospitality, retail, and food and beverage facilities to enhance JKIA’s identity and services.
According to a feasibility report submitted to the Kenya Airports Authority (KAA), Adani’s vision for the “City Side Development” (CSD) is to build a futuristic and mixed-use development that extends beyond serving the airport’s passengers. The report highlights Adani’s intention to cater to a broader demand within Nairobi, aiming to make the area around JKIA a vibrant hub that attracts both locals and travelers. The proposed airport city will include a hospitality district, world-class retail spaces, and various other recreational facilities.
The report outlines a phased approach to the development, with the entire project set for completion by the year 2050. The first phase, targeted for completion by the end of the Financial Year 2028, will include constructing a new terminal building, associated apron, a taxiway system, two rapid exit taxiways, landside road networks, a car parking facility, and a utility block. Phase two will focus on building remote stands, additional taxiways, and landside roads, with an expected completion by Financial Year 2035. The final phase, scheduled for completion by 2049, involves expanding the terminal to enhance passenger handling capacity.
Adani’s proposal follows initial approval from the KAA for a Privately Initiated Proposal (PIP) deal under Section 40 of the Public Private Partnership (PPP) Act. This section permits private investors to submit proposals for projects aligned with national infrastructure priorities. Adani’s development plans for JKIA aim to address the need for modern infrastructure, increase airport capacity, and improve passenger experience.
However, the proposal has not been without controversy. Adani’s potential takeover of JKIA has sparked significant opposition, particularly among aviation workers. Protests erupted on Wednesday, with workers demanding the termination of the deal, citing concerns over job security, transparency, and the impact of privatization on national assets. The demonstrations led to the disruption of normal airport operations, leaving many passengers stranded.
In response to the protests, Kenya’s Transport Cabinet Secretary, Davis Chirchir, sought to calm tensions by pledging to make key documents of the proposal available to the public. Chirchir emphasized the importance of public participation in the decision-making process, assuring that the government’s intentions are focused on utilizing the PPP framework to improve the country’s infrastructure, including roads, airports, and schools.
“All documents will be put out, and this will help the government continue public participation to ensure everybody gets what the government is trying to do to basically employ the PPP framework to open our infrastructure in roads, airports, and schools,” said Chirchir.
Despite Chirchir’s assurances, he made it clear that no agreement has been finalized as the proposal is still under review. The opposition from aviation workers and other stakeholders suggests that the road ahead for Adani’s plans may be fraught with challenges.
As the review process continues, the proposed lease deal at JKIA remains a hot topic, reflecting broader debates on the privatization of public assets and the role of private investment in national infrastructure. With the government’s commitment to transparency and public consultation, the fate of Adani’s airport city proposal will likely depend on how effectively these concerns are addressed in the coming months.
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