•Senators also expressed concern over the content of Adani’s proposal, which appeared to include insider information on JKIA’s challenges, raising suspicions about the transparency of the process.
•Chirchir explained that the government is unable to borrow due to the current fiscal space but highlighted the pressing need to upgrade JKIA.
Image: SCREENGRAB
Shocking details have emerged of how the Adani-JKIA deal feasibility study was undertaken in just 14 days with powerful interests from unnamed persons in government pushing it through.
Documents presented before the Senate Roads and Transportation Committee revealed that the government has already initiated a due diligence process to evaluate the technical and financial capacity of Adani Limited, despite the cabinet secretary holding that no deal has been signed.
Kisii senator Richard Onyonka, in a committee session with the Roads CS Davis Chirchir, lifted the lid on boardroom wrangles among KAA board over the deal to grant Adani the 30-year concession.
The senator told the Transport committee that the board of KAA had raised an issue with persons in government who had an interest of deal, questioning whether two weeks were enough to conduct a feasibility study and make a conclusion.
“Individuals were sitting and telling us that our airport, which is worth 1.2 trillion shillings, can actually be given somebody at Sh136 billion for a period of 35 years, or whatever it is. Did it occur to you waziri that people in government have an interest in this deal,” posed Onyonka.
The CS his defense said that most of the due diligence was done ‘remotely’ and part of it was based on a previous case studies that’s why the process took a shorter period
However, the CS’s answer didn’t seem satisfactory and was fast to dismiss the claims that a final concession agreement had been reached with the Indian firm, clarifying that only a “Head of Terms” agreement—summarizing key negotiation points—has been agreed upon.
Chirchir maintained that the agreement is neither signed nor legally binding as it stands.
“We have not signed anything yet we are currently on stakeholder engagement and due diligence, which will inform the drafting of the concession agreement,” Chirchir told the committee.
The legislators led by Narok Senator Ledanma Ole Kina, Nairobi Senator Edwin Sifuna and Kisii counterpart Richard Onyonka pressed Chirchir on the corner accusing influential government leaders of favoring Adani in securing the 30-year lease for the airport.
Narok Senator Ledama Ole Kina questioned why the government had entered into talks with Adani Limited, given allegations of corrupt practices involving the firm in other countries.
“There are indications that Adani has been involved in questionable activities elsewhere. If you search online, you’ll see it’s a multinational corporation with a tainted reputation,” Senator Ole Kina remarked, in reference to reports of a delegation sent to India to assess Adani’s financial and technical capacity.
Chirchir explained that the government is unable to borrow due to the current fiscal space but highlighted the pressing need to upgrade JKIA.
He pointed to Adani’s experience in running major airports as a reason for their consideration.
“Why Adani? They operate one of the world’s largest airports in Mumbai, which handles 60 million passengers annually. It is considered among the most efficient airports globally. Of course, we will thoroughly assess both the positives and negatives in our due diligence process,” he said.
Senators also expressed concern over the content of Adani’s proposal, which appeared to include insider information on JKIA’s challenges, raising suspicions about the transparency of the process.
“The information submitted by Adani is troubling—it includes satellite images and detailed analysis of our airport. If this isn’t an insider deal, how else would Adani have acquired such information?” Senator Ole Kina questioned.
In response, Chirchir admitted that certain details about JKIA’s issues were shared with Adani as part of efforts to attract investment.
“We provide information to potential investors to generate interest. It’s essential to give accurate details,” Chirchir noted.
Chirchir further denied claims that the “Head of Terms” was drafted solely by Adani Limited, clarifying that ALG, a Spanish firm, and Ashitiva Advocates, a Kenyan law firm, were involved in the drafting process.
“The Head of Terms was not prepared by Adani Limited alone. ALG, a well-regarded Spanish firm with expertise in airport management, played a key role. The document was thoroughly negotiated,” he said.
Adani submitted a privately initiated proposal (PIP) to the Kenya Airports Authority (KAA) in March this year to operate JKIA under a 30-year concession.
The Indian firm financial proposal shows that Sh230 Billion will be spent on the development of a new terminal building, associated apron and taxiway system and two
The Indian company is proposing a city-side development consisting of hospitality, business centres and other amenities accessible to travellers and city residents.
Last week, Adani Enterprises set up a Kenyan subsidiary as it steps up its push to take over the running of Jomo Kenyatta International Airport, amid continued opposition among transport workers to the takeover by the Indian conglomerate.
The flagship company of Gautam Adani’s sprawling corporate giant incorporated “Airports Infrastructure PLC (AIP)” in Kenya on August 30, according to a filing with the National Stock Exchange of India in Mumbai.
From the session it emerged that JKIA is worth Sh1.2 trillion, with the land alone taking about Sh930.7 billion, buildings take up Sh20 billion, Pavement Sh145 billion and other fixtures 4 billion.
JKIA had in the 2023-24 financial year generated Sh19billion in revenue, with Sh14 billion coming from aeronautical (Landing, parking and air passenger space charges), and the rest of the Sh5billion coming from non-aeronautical which is car park, duty free, advertising, cargo and general retail.