The proposed deal between Kenya and Adani Airport Holdings Limited involves the expansion and modernization of the Jomo Kenyatta International Airport (JKIA) in Nairobi under a 30-year public-private partnership (PPP) agreement. The deal, which is still under review, has raised concerns among some Kenyan lawmakers and civil society groups who fear the privatization of the airport.

Key Points of the Deal:

1. Investment and Development: Adani Airport Holdings, a subsidiary of India’s Adani Group, proposes a $1.85 billion (approximately Ksh. 242 billion) investment to expand and modernize JKIA. The project would involve upgrading the existing terminal, building a new one, constructing a second runway, and enhancing the taxiway and apron over three phases, expected to be completed by 2029, 2035, and a final phase by 2054. The upgrades also include a city-side development with hospitality and business hubs to boost the airport’s facilities and contribute to the local economy.

2. 30-Year Concession: Under the “Build, Operate, and Transfer” (BOT) model, Adani Airport Holdings would manage JKIA for 30 years. The agreement allows the company to determine and collect charges for non-aeronautical and commercial activities during this period, while assets developed through capital expenditure would be transferred back to the Kenya Airports Authority (KAA) at the end of the term.

3.Controversy and Due Diligence: The deal has sparked scrutiny, with Kisii Senator Richard Onyonka calling for transparency from the KAA on how the agreement was reached. He has petitioned the Senate Committee on Roads and Transport to provide more information on the contract, the process of awarding the lease, and the involvement of a transaction advisor. Concerns about the transparency of the process and potential favorable tax policies and exemptions for Adani have been raised. The deal is currently subject to technical, financial, and legal reviews to ensure compliance with Kenya’s Public-Private Partnerships Act of 2021.

4.Visit to India for Due Diligence: In light of these concerns, 16 top Kenyan government officials have traveled to India on a “due diligence” mission to evaluate the operations and management practices of Adani Group’s existing airport projects. This visit aims to assess whether the firm can meet the standards required for such a significant project at JKIA.The deal is being closely monitored by various stakeholders, and any final decisions will depend on the findings of the ongoing due diligence and review processes.