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Court halts proposed JKIA-Adani deal

Francis Muli
A court gavel. Image used for illustration purposes only. PHOTO/Pexels
A court gavel. Image used for illustration purposes only. PHOTO/Pexels

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The High Court has issued orders halting the implementation of the Jomo Kenyatta International Airport (JKIA) deal with the Adani Group.

In a ruling on Monday, September 9, 2024, Justice J Chigiti barred the government from implementing the deal until the case filed by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) was heard and determined.

“The application dated 9.9.24 is hereby certified as urgent and the same is admitted for hearing during the court recess. Prayer 2 is granted as prayed. The leave so granted shall operate as stay in line with prayer 3,” Justice Chigiti ruled.

“The applicant shall file and serve the substantive application within 3 days. The respondents and the interested parties shall thereafter file and serve their respective responses if any 5 days of service. The Applicant shall thereafter file and serve its submissions within 3 days thereafter. The Respondents and the interested parties shall thereafter file and serve their respective submissions within 3 days of service.”

The matter shall be mentioned on October 8, 2024, to secure a judgment date.

Adani deal

On Monday, September 2, 2024, aviation workers staged protests at JKIA over the planned Adani takeover deal.

Kenya Airports Authority (KAA) confirmed the existence of an agreement between JKIA and Adani Airport Holdings Limited in July.

KAA says the deal came as a result of the approval of the JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway and apron, by the cabinet due to the airport’s ageing infrastructure.

“Jomo Kenyatta International Airport (JKIA) is a strategic National asset built in 1978. Its aging infrastructure is a threat to our regional competitiveness.

“The Cabinet approved the JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway and apron. The attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding,” the statement reads in part.

KAA says it had received the investment proposal under the Public Private Partnerships Act 2021 from the Adani Airport Holdings Limited, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA.

“Kenya Airports Authority (KAA) received an investment proposal under the Public Private Partnerships Act 2021 from the Adani Airport Holdings Limited, a key airport operator, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA,” KAA said.

The proposal, KAA says, will be subjected to technical, financial and legal reviews alongside requisite due processes in compliance with the Public Private Partnerships Act 2021.

“The Project Agreement will be preceded by Stakeholder Engagement, the National Treasury approval, the Attorney General clearance and the Cabinet approval.

“I wish to assure our Staff that no jobs are at risk. I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits,” Henry Ogoye, KAA acting Managing director and CEO said in the statement.

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