High Court refers Adani’s JKIA takeover case to Chief Justice Koome

The High Court on Friday referred a petition opposing the proposed takeover of the Jomo Kenyatta International Airport (JKIA) by the Adani Group to Chief Justice Martha Koome.

This will lead to the formation of a bench to address the legal challenges raised against the government's leasing plan.

Justice John Chigiti, who is handling the case, said that the concerns brought forward by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) are substantial and necessitate the evaluation of more than one judge.

"This matter is referred to the CJ for empanelment of a bench," said Justice Chigiti.

In the case, the KHRC and the LSK had moved to court to challenge the takeover, saying that the deal violated the principles of good governance.

They argued that the process surrounding the proposed deal lacks the essential elements of good governance, accountability, and transparency.

These organisations filed the petition to contest the deal, asserting that it undermines the prudent use of public funds.

When the case was initially brought to court, Justice Chigiti issued an order preventing any actions regarding the Adani proposal for JKIA until the matter was resolved.

In their arguments, KHRC and LSK emphasised that the Kenyan government could independently raise the Sh238 billion required to upgrade JKIA without resorting to a lease.

The Adani Group's plan involves significant upgrades to the airport, including the construction of a second runway and a new passenger terminal, under a 30-year build-operate-transfer (BOT) contract. However, lawyer Dudley Ochiel, representing the petitioners, criticised the deal, claiming it is unaffordable, could lead to job losses, and poses a disproportionate fiscal risk with no tangible value for taxpayers.

As the case moves forward, the establishment of a bench by Chief Justice Koome will be crucial in addressing these pressing legal and ethical concerns surrounding the proposed airport takeover.

Forensic audit

In September 2024, members of the National Assembly ordered a forensic audit on the deal between the Kenya Airports Authority (KAA) and India's Adani Holdings regarding the proposed upgrade of JKIA.

The Public Investments Committee on Commercial Affairs and Energy recommended the auditor general investigate how Adani became involved in the project.

In light of ongoing court orders, the committee on Tuesday also directed KAA to cease any further negotiations with Adani.

"It is the advice of the committee that you don't do anything with Adani until this committee reports this matter to Parliament," stated the committee's chairman, David Pkosing, who is also the MP for Pokot South.

The lawmaker requested a special audit report to be submitted by the end of October.

The committee aims to clarify the estimated costs involved in upgrading the airport and how the proposed amount of $1.83 billion (Sh230 billion) was determined.

They want auditors to examine the scope of the project, which includes building a new terminal and a second runway.

MPs are also seeking to determine the most effective way to engage a private sector partner and whether a privately initiated investment proposal (PIIP) is the best approach.

"The question we seek information on is whether there is an alternative way to save people money instead of the PIIP route," Pkosing said.

Additionally, the audit will assess how the arrangement affects other airports and aerodromes that rely on JKIA for their operations.