No agreed terms yet on JKIA upgrade deal with Adani - Mudavadi

The Kenya Kwanza Government now says it has not signed any agreements with Adani Airports Holdings Limited over the upgrading of the Jomo Kenyatta International Airport (JKIA) infrastructure.

According to Prime Cabinet Musalia Mudavadi, the proposal by the private company is undergoing due process including reviews and negotiations in compliance with the Public-Private Partnerships (PPP) Act.

"For the avoidance of any doubt, all terms and conditions of the proposed arrangement are subject to negotiation in accordance with the provisions of the PPP Act and no terms have been agreed upon yet," he said in a statement on Tuesday.

The clarification follows weeks of claims online that the Airport had been leased to a foreign entity.

Mudavadi who is also the Foreign Affairs Cabinet Secretary highlighted that the interest of the country shall come first in the deal.

"As and when the terms are agreed, there shall be appropriate safeguards to ensure that Kenya's national interest prevails and that the private party is held fully accountable for the performance of its obligations," he noted.

Mudavadi noted that the country is currently facing a tight fiscal space due to the public debt burden and it was therefore prudent to look at the option of Public-Private Partnerships.

He said this is the direction the government took in its Budget Policy Statement 2024, to have additional infrastructure investments.

Prime Cabinet Secretary and CS Foreign and Diaspora Affairs Musalia Mudavadi. (Photo: X/Musalia Mudavadi)

The Prime CS assured that a detailed investigation would be conducted to determine Adani Holdings' suitability as investors in the JKIA upgrade project.

Legal frameworks

Mudavadi emphasised that the proposed expansion and modernisation of JKIA will be done in strict observance of the Constitution and legal frameworks established by the PPP Act.

"We assure the public that every step of this project will undergo rigorous review and scrutiny. The Government is committed to maintaining transparency and accountability throughout the process," he said.

However, he pointed out that should the investigations prove them unsuitable, the government will look for other suitable options to undertake the project.

In addition, the CS explained that JKIA was 10 years behind its development schedule according to its long-term master plan.

As a result, the airport lags behind regional competitors in terms of quality infrastructure, innovation and technology.

"Various incidences have brought to light the need to upgrade the airport into a modern airport. These include leaking roofs, inadequate aircraft parking bays, outdated passenger terminals, and baggage handling systems, as well as long waiting times," Mudavadi added.

In May, the Ministry of Transport unveiled plans for a new terminal at Jomo Kenyatta International Airport (JKIA) to combat future flooding.

The move was prompted by recent water leakage and flooding in sections of the airport, which is East Africa's main hub.

The new terminal would be built through a Public-Private Partnership (PPP) model, to have a fully operational facility within the next three years.

JKIA, the biggest and busiest airport in the country, has faced myriads of challenges with the latest revelations of a leaking roof going viral.

Last year, the Ministry of Transport already carrying out feasibility studies that will confirm the actual cost of constructing the new airport.

It was estimated the construction of an international airport with basic components – runway, hangar, parking lot, terminal building and taxiway – could cost about Sh15 billion.