Adani says it paid Kenya Sh6.47 million review fee for JKIA upgrade proposal

Indian conglomerate Adani Group has disclosed that it paid Sh6.47 million to the Kenyan government as a review fee for its Sh242 billion proposal to take over and upgrade the Jomo Kenyatta International Airport (JKIA).

Adani Airport Holdings Limited, a subsidiary of the Adani Group, stated in new court documents that they submitted a $50,000 (approximately Sh6.47 million) fee to the Public-Private Partnerships (PPP) Facilitation Fund for the review of their $1.85 billion (Sh242 billion) plan to manage and refurbish JKIA in Nairobi.

The details were revealed in a September 17 affidavit responding to a legal challenge by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK), which filed a case on September 9 seeking to halt the deal.

In the documents, Adani has explained that the payment was made alongside all the necessary pre-approval documents required by Kenyan authorities.

“Upon submission of the PIP, the 5th respondent (Adani Airport Holdings Limited) duly paid a review fee of USD 50,000 to the Public-Private Partnership Facilitation Fund as required by the law,” read the court papers.

They added, “The 5th respondent also provided all the necessary pre-approval documents including incorporation and corporate documents, tax compliance documents, and financial documents to aid the PPP Directorate, in coordination with KAA, to carry out their due diligence on the proponent.”

Confirmed receipt

Adani further revealed that the Kenya Airports Authority (KAA) had confirmed receipt of their proposal on March 18, indicating the project had been cleared to advance to the feasibility study phase.

“The KAA indicated it had cleared the project to proceed to the project development phase, that is, the feasibility study phase,” read the court papers.

The group says it provided a comprehensive feasibility study, including a report on the environmental and social impact, financial plans and how the project would benefit Kenyan taxpayers. The study outlined that the proposal was aimed at addressing long-standing infrastructure issues at JKIA.

Adani also dismissed claims by the KHRC and LSK that the airport had already been leased for 30 years, calling it a "misrepresentation of facts".

The Indian firm clarified that the project is still under review and due diligence.

LSK and KHRC have opposed the deal, arguing that Kenya’s busiest airport was leased to a foreign company without sufficient consultation or transparency.

They contend that the deal lacks proper scrutiny and could set a negative precedent for public infrastructure projects.

Under Kenya's Public-Private Partnerships Act, a contracting authority can consider privately initiated proposals (PIPs) if they meet national infrastructure priorities, demonstrate societal need, and provide value for money. In addition, such proposals must include all required documents and offer fair market pricing.

Non-refundable

The law also requires private parties to pay a non-refundable review fee of $50,000 or 0.5 per cent of the project’s estimated cost, whichever is lower, at the time of submission.

“The review fee paid shall not create any obligation on the contracting authority or the directorate towards the proponent,” says the law.

In its defence, Adani said it learned of JKIA's deteriorating condition through Kenyan media and submitted its proposal to KAA on March 1, 2024.

Former Transport Cabinet Secretary Kipchumba Murkomen had hinted at an airport upgrade in November last year, though no specific project cost was provided.

KAA's acting CEO, Henry Ogoye, previously indicated that the Adani proposal required significant capital that the government could not afford due to fiscal constraints.

The court has halted all further action on the proposed deal until the case is fully resolved.

The matter is set for mention on October 8.