Jomo Kenyatta International Airport. Photo/courtesy.
The planned takeover of Jomo Kenyatta International Airport (JKIA) by Indian firm Adani Group has sparked significant controversy in Kenya, with Kenya Airports Authority workers staging protests against it.
On September 2, 2024, The airport workers staged a protest to oppose the deal over concerns on possible job losses, security and other issues.
Privately Initiated Proposal (PIP) was submitted to the Kenya Airports Authority (KAA) by Adani Group earlier in 2024, with the aim of operating, maintaining, developing, and modernizing JKIA with the government granting a concession for 30 years.
The deal comes with the responsibility of expanding the airport infrastructure and after 30 years, Adani will transfer the airport back to the government at a value mutually agreed upon. The agreement is set to take effect in November.
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The KAA workers have complained that the planned privatization of JKIA is shrouded in secrecy, stating that all documents on the take over of the airport has not been given to them. They are fearful that they will loose jobs if Adani Group takes over.
Kenya Aviation Workers’ Union (KAWU) Secretary General Moss Ndiema said that if their demands won’t be met they will continue with strikes. “If they do not heed to our demands we are back here tomorrow,” he said.
Some of the content of the deal includes $750 million (KSh 96.66 billion) set for development of a new terminal, associated apron, taxiways, and other with completion targeted for 2029. Another $92 million (KSh 11.85 billion) set for further enhancement of taxiway systems and construction of additional remote aircraft parking stands by 2035. $620 million (KSh 79.91 billion) set for the development of new facilities, ensuring integration with the existing infrastructure.
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Adani will have control and also introduce a dollar-denominated charges for airport service as the deal guarantees them an 18% internal rate of return (IRR) on equity, a financial metric indicating profitability.
It also projects a significant increase in revenue with the government receiving proportion of the revenue throughout the period. However, members of the public are strongly opposing the deal as they fear that the East Africa busiest airport will lose its national significance when control by a foreign agency.
Kisii Senator Richard Onyonka had petitioned the Senate Committee on Roads and Transport to issue a statement of how the deal between the government and Adani Group was reached. However, report indicates that little information has been given on it, sparking speculation among members of the public.
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