The Kenya Airport Authority has commented on the Jomo Kenyatta International Airport concession proposal.
In a statement by acting managing director Henry Ogoye on Wednesday, he confirmed that the KAA has received an investment proposal under the Public Private Partnerships Act 2021 from Adani Airport Holdings Limited.
In the statement, KAA stated that Adani is an Indian Group and a key airport operator, which wishes to invest in a new passenger terminal building, a second runway and refurbishment of the existing facilities at JKIA.
Ogoye said the proposal will be subjected to technical, financial and legal reviews alongside requisite due processes in compliance with the PPP Act 2021.
"The Project Agreement will be preceded by Stakeholder Engagement, the National Treasury approval, the Attorney General clearance and the Cabinet approval," he said.
Ogoye explained that JKIA, which was built in 1978, is an ageing infrastructure and a threat to regional competitiveness.
He noted that 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," he stated.
Ogoye assured the staff that no jobs were at risk in relation to the proposal.
"I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits," he added.
This comes days after Kisii Senator Richard Onyonka called on the Senate Standing Committee on Transport for transparency regarding the leasing of JKIA.
"We need a comprehensive disclosure of the terms and conditions of the agreement, including the selection process for Adani Group," he said.
Onyonka stated that the proposed deal involves a 30-year concession under a Build, Operate, and Transfer (BOT) model.
"The assets developed through capital expenditure by the company will be transferred to KAA at the expiry of the concession term at a value determined and agreed by the parties, which value shall be structured to grant the company an equity of 18 per cent," Onyoka added.
He called for the provision of the meeting notice, agenda, minutes, and resolutions to understand the decisions made by the board and the rationale behind leasing public land to Adani for further development.
