Former UDA chairman Johnson Muthama has questioned the Sh240 billion deal between the government and the Jomo Kenyatta International Airport upgrade.
In a statement on X, Muthama questioned whether the country lacks ideas on how to upgrade the infrastructure of its institutions.
He equated the deal to the Anglo Leasing and Goldenberg deals which ended up costing the country.
Muthama who currently serves as a Parliamentary Service Commissioner noted that while Anglo Leasing and Goldenberg deals initially looked beneficial, they ended up being worse for Kenya.
He added that he will make further observations on the deal at a later date.
"The Goldenberg and Anglo Leasing deals seemed beneficial at first, but they ultimately had negative consequences for Kenyans. Similarly, the Sh240 billion Adani-JKIA deal might end up being even worse. Does leasing JKIA to this private firm suggest that Kenyans lack ideas on how to improve their institutions? I will say more later," Muthama said.
At the heart of the proposal is a request by Adani to operate JKIA under a 30-year concession, during which the Indian firm would pay the Kenya Airports Authority a fixed annual fee.
According to the documents, Adani offers to pay KAA Sh6 billion per year for the first five years, with the fee rising to Sh6.7 billion by 2035 and climbing further in subsequent years.
By the 30th year of the deal, Adani projects the annual concession fee to reach Sh9.8 billion.
In exchange, Adani proposes a multi-phased redevelopment of JKIA that would significantly expand the airport's capacity and modernise its facilities.
Adani also intends to improve the existing runway, build a second runway, and construct a new, more efficient apron system with 18 contact stands.
The investor projects that its management of JKIA will generate Sh16.5 billion in revenues in the first year, eventually reaching Sh128 billion by the end of the 30-year concession period.
Prime Cabinet Secretary Musalia Mudavadi allayed concerns by Kenyans, stating that the proposal is still under review and that the government will ensure appropriate safeguards are in place to protect Kenya's national interests.
Mudavadi acknowledged the government's budget constraints, noting that the proposed Sh260 billion expansion of JKIA is beyond the state's current financial capacity.
He said the private investment would be a way to fund the much-needed upgrade of the airport, which has long been plagued by ageing infrastructure and capacity constraints.
"For the avoidance of doubt, all terms and conditions of the proposed arrangement are subject to negotiation in accordance with the Private Public Partnership Act. No terms have been agreed upon yet," Mudavadi explained, emphasising that the government will carefully vet the proposal before any final agreement is reached.