Shippers Council Demands Transparency from KAA on Controversial Adani Airport Deal

The Shippers Council of Eastern Africa (SCEA) has called on the Kenya Airports Authority (KAA) to provide clarity regarding the ongoing negotiations with Adani Holdings concerning the takeover of Jomo Kenyatta International Airport (JKIA). The council’s request comes amid growing concerns from businesses invested in the airport, particularly regarding the impact the deal could have on cargo freight operations and existing private sector investments.

The proposed 30-year concession agreement with Adani Holdings has been met with significant opposition from various stakeholders, including the Kenya Aviation Workers’ Union (KAWU) and sections of the public. Adani plans to invest approximately $750 million (around Sh96.5 billion) in the airport, which includes constructing a second runway and a new passenger terminal, along with associated apron and taxiway systems. The deal is structured as a build-operate-transfer (BOT) model, allowing Adani to recoup its investment over the concession period.

However, the SCEA has expressed concerns about the transparency of the deal and the potential disruptions it could cause to freight businesses and other private sector operations at JKIA. SCEA’s chief executive, Agayo Ogambi, emphasized that any agreement involving JKIA must respect existing contracts and ensure that there will be no disruption to current business activities, both during the negotiation process and throughout the concession period.

Ogambi also stressed the importance of adhering to Kenya’s Public-Private Partnership (PPP) policies and ensuring that all requisite government approvals are obtained in a transparent manner. He called for the incorporation of stakeholders’ views and concerns, particularly those raised by current KAA employees. The SCEA is particularly interested in understanding how the deal will address infrastructural improvements at JKIA and protect the substantial private sector investments that have already been made at the airport.

The opposition to the Adani deal has not been limited to the SCEA. Unionized staff at the Kenya Airports Authority, led by KAWU, have threatened to go on strike after multiple attempts to seek answers from relevant state institutions failed. KAWU Secretary General Moss Ndiema has criticized the deal, arguing that JKIA is financially self-sufficient and capable of funding its own modernization and expansion projects. Ndiema suggested that if a new investor were to be involved, they should be required to construct a new terminal at JKIA rather than taking over the existing operations.

The concerns raised by KAWU and other stakeholders have been echoed by the Parliamentary Public Debt and Privatization Committee, which recently called for a halt to the negotiations until more details about the deal are made public. Despite these protests, Adani Enterprises has moved forward with its plans, establishing a Kenyan subsidiary as it eyes the JKIA deal. The subsidiary, Airports Infrastructure PLC, was incorporated on August 30, 2024, with Adani issuing share capital of Sh6.75 million.

In response to the growing opposition, the Kenyan government has maintained that no final deal has been struck with Adani Holdings. National Treasury Principal Secretary Chris Kiptoo stated that the review of Adani’s proposal for the JKIA upgrade is still ongoing, and that the National Treasury will provide a comprehensive submission once the review is completed. However, some Members of Parliament have demanded that the Treasury be directed to stop further engagements with Adani until more information is provided.

Kinangop MP Kwenya Thuku voiced concerns that the government’s perceived laxity in providing information about the deal has fueled speculation and suspicion. As the situation continues to unfold, the SCEA and other stakeholders remain vigilant, calling for greater transparency and assurances that the interests of businesses and employees at JKIA will be protected.