JKIA generated Sh14 billion in revenue from landing, parking charges in last financial year
By Maureen Kinyanjui |
CS Chirchir’s report also reveals that the airport is valued at Sh1.1 trillion, based on an assessment by the public works department.
The Jomo Kenyatta International Airport (JKIA), at the heart the centre of a debate regarding a proposed lease to the Indian firm Adani Group, has made headlines by generating a total revenue of Sh19 billion in the last Financial Year 2024-2025.
The revenue as revealed in documents tabled by Transport Cabinet Secretary Davis Chirchir in Parliament, was derived from various streams, including both aeronautical and non-aeronautical activities including landing and parking fees, as well as air passenger service charges.
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Non-aeronautical activities, such as car parking, duty-free sales, advertising, cargo services, and general retail, contributed an additional Sh5 billion.
CS Chirchir’s report also reveals that the airport is valued at Sh1.1 trillion, based on an assessment by the public works department.
For comparison, Mombasa's Moi International Airport is valued at Sh23.7 billion, Eldoret Airport at Sh10.8 billion, and Kisumu Airport at Sh9.9 billion.
The valuation breakdown includes land worth Sh937 billion, buildings at Sh20 billion, pavement at Sh145 billion, and other infrastructure at Sh4 billion.
Adani proposal
As part of its proposal, Adani Group plans to redevelop JKIA, which includes refurbishing the existing terminal and constructing a new passenger terminal with a capacity of 23 million.
Additionally, the company aims to build access roads, a parking garage, and expand taxiways.
Transport CS Chirchir, who appeared before a Senate committee last week, noted that the designs for these projects would not be available until after the concession agreement is signed.
“Reference designs, sketches, and maps will only be available once the development area is marked post the signing of the concession agreement,” he explained.
Adani also seeks 30 acres of land at JKIA for real estate and commercial developments, though this request will be handled separately from the concession agreement by the Kenya Airports Authority.
Regarding current employees at the airport, Chirchir assured that Adani would offer them terms equal to or better than their existing conditions.
“Joining Adani will be voluntary for the employees. They will have the option to assent to Adani to stay with KAA or to take a voluntary exit package,” he said.
To ensure a smooth transition, there will be a three-year interim management period where both the Kenya Airports Authority and Adani will jointly manage the facility.
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