The Kenyan government is evaluating the capability of Adani Airport Holdings to develop JKIA. This was made known by the Cabinet Secretary for the National Treasury John Mbadi during a presentation before the Senate committee.
“The due diligence is being conducted by the KAA and the State Department of Transport, among other lead agencies,” said Mbadi.
He revealed that the project is now at the negotiation stage. This follows approval from the Public-Private Partnership Committee during its 47th Ordinary meeting on August 21, 2024.
Adani promised a whooping Sh238 billion investment to upgrade the airport facilities. Legal obstacles are, however, emerging. The High Court has temporarily suspended the leasing plan. The case will be heard on October 8.
“This privatization deal would give Adani control of JKIA for 30 years,” added Mbadi. “This has raised public concerns over secrecy and possible implications.”
Human rights organizations have also reacted strongly to the deal. The Kenya Human Rights Commission and the Law Society of Kenya filed motions to block the deal, arguing that leasing a strategic asset like JKIA is irrational and potentially injurious.
Mbadi explained what the PPP Act, 2021 demands. “There are due diligences required at two levels provided for in Sections 41 and 27 of the law,” he said.
Section 41 demands confirmation that the private party does not present ineligibility to enter into PPPs. Confirmation of their financial stability and tax compliance is also put to test in this section.
“The due diligence extends to the verification of any criminal convictions by directors or officers,” he said. “These are key pointers toward accountability.”
Adani Airport Holdings made a Privately Initiated Proposal to KAA. The proposal was regarded as in compliance with Sections 40(1) and 40(2) of the PPP Act.
“The State Department of Transport submitted the proposal to the National Treasury on March 1, 2024,” Mbadi confirmed. “This is in line with Section 40(4) of the PPP Act.”
