- Adani has pledged a Sh238 billion investment to "upgrade and expand" the airport.
- The High Court has temporarily suspended the proposed leasing plan and directed the case to be heard on October 8.
Image: HANDOUT
The government is undertaking due diligence to establish the capacity of Adani Airport Holdings to upgrade and expand JKIA, National Treasury CS John Mbadi has said.
In a presentation to the Senate Standing Committee on Roads, Transportation and Housing, Mbadi revealed that the due diligence is being undertaken by the Kenya Airports Authority (KAA), the State Department of Transport, the State Law Office, and the Public-Private Partnership Directorate of the National Treasury.
“The project is in the negotiation phase following approval by the PPP Committee at its 47th Ordinary meeting held on August 21, 2024,” the CS said.
Adani has pledged a Sh238 billion investment to "upgrade and expand" the airport.
The High Court, however, temporarily suspended the proposed leasing plan and directed the case to be heard on October 8.
The privatisation deal, which would grant Adani control of the airport for 30 years, ignited widespread public outrage over its secrecy and potential consequences.
The Kenya Human Rights Commission and Law Society of Kenya moved to court to stop the deal, arguing that leasing a strategic and profitable Jomo Kenyatta International Airport to a private entity is irrational.
In his presentation, Mbadi noted that the PPP Act, 2021, requires due diligence to be undertaken at two levels as provided in Sections 41 and 27 of the PPP Act, 2021.
He noted that Section 41 requires that due diligence is conducted by the directorate and the contracting authority to confirm that the private party is not debarred by any country or any international organisation from participating in PPPs or similar arrangements; is not corrupt; is not insolvent; is tax complaint in all jurisdictions in which it has local presence and in its home country and that it is not default on payment of social security and employment benefits and its directors or officers have not been convicted of any criminal offence.
The CS said Adani Airport Holdings Limited submitted a Privately Initiated Proposal to KAA in line with Section 40(1) of the Public Private Partnerships (PPP) Act, 2021.
He added that the same was considered by KAA in line with Section 40(2) and (3) of the PPP Act, 2021.
“The State Department of Transport submitted to the National Treasury, vide a letter under Ref. MOT &I/C/AT/024 and dated March 1, 2024, the Privately Initiated Proposal for assessment and approval in line with Section 40(4) of the PPP Act.”