Chirchir says Kenya declined Adani's request for free land near JKIA

Transport Cabinet Secretary Davis Chirchir has revealed that the Kenyan government has turned down a proposal from Adani Airport Holdings Ltd to acquire 30 acres of land adjacent to Jomo the Kenyatta International Airport (JKIA).

Appearing before the Senate Roads and Transport Committee on Friday, Chirchir explained that Adani's proposal aimed to transform the land into an 'airport city', featuring advanced recreational facilities.

However, the CS insisted that the government is not offering any free land for this project.

"The government is not offering any free land to Adani Airport Holdings in the proposal. Adani, in its proposal, included a request for 30 acres of land at JKIA for real estate and commercial development, what we're calling the city side," Chirchir said.

He further noted that this request was excluded from the ongoing concession agreement and would be addressed separately according to the Kenya Airports Authority (KAA) policy on concessions and leases.

This policy requires approval from the Head of Public Service, as outlined by current regulations.

In response to questions from Kiambu Senator Karungo Thang’wa and the committee, Chirchir confirmed that the concession agreement with Adani has not yet been finalised and that KAA is still assessing Adani's proposal.

Although an initial head of terms agreement has been approved, outlining key negotiation points, a final contract has not been agreed upon, he said.

The senators also questioned the selection process for Adani and the lack of transparency about the deal.

Chirchir clarified that the public-private partnership agreement allows private investors to submit proposals, which are then reviewed by the government.

This process differs from standard procurement methods and involves due diligence before final terms are agreed upon.

The government's handling of the Adani proposal has faced significant criticism, with concerns about the potential 30-year lease of JKIA, East Africa's busiest airport, and the secrecy surrounding the negotiations.

On Wednesday, hundreds of passengers were left stranded for hours at Kenya's main airport after workers went on strike over a planned takeover by the Indian company.

The strike which lasted 24 hours also affected the main airports in Kisumu, Mombasa and Eldoret.

The aviation workers, however, called off their strike following talks with the government, through the Ministry of Roads and Transport.

The High Court has since issued a stay prohibiting any person from implementing or acting on the privately initiated Adani proposal over JKIA, pending the conclusion of a filed case.

The Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) moved to court to block the controversial planned takeover of JKIA by India's Adani Enterprises.

Adani Enterprises Limited submitted a proposal on March 1, 2024, to take over the running and management of JKIA.

In June, the government approved the relevant aviation policies, giving Adani a head start on the planned expansion of JKIA.

The privatisation deal, which would grant Adani control of the airport for 30 years, ignited widespread public outrage over its secrecy and potential consequences.

Adani has pledged a Sh238 billion investment to "upgrade and expand" the airport.