Senator Wants Secret Deal To Lease JKIA To Indian Firm Probed

A senator now wants the management of Kenya Airports Authority (KAA) to explain how it entered into an alleged private deal to lease the Jomo Kenyatta International Airport (JKIA) to an Indian firm, Adani Airport Holdings Ltd.

Kisii Senator Richard Onyonka wants KAA to provide details of the contract between them and transaction advisor ALG, a Spanish firm citing the ownership of the company, processes undertaken to identify and final award of the contract to develop an Air Transport Policy in Kenya and subsequent payment of Sh160 million to the company.

Public land

In a statement tabled before the Senate Plenary, Onyonka further wants the airport management to furnish the Senate with the notice of the meeting, agenda, minutes and resolution of the board meeting convened by KAA on July 15, 2024.

“In the statement, the committee should state the reasons for the government plans to make available free land to the company to build a city-side development on public land which may lead to land issues in areas surrounding JKIA,” reads part of the statement.

According to Onyonka, KAA entered an agreement with ADANI Commercial a private company to ‘Build, Operate and Transfer’ to lease JKIA and the process to pay a fixed concession fee as will be agreed in the concession agreement.

Onyonka argues that the tenure of the model was to be 30 years where the assets developed through capital expenditure by the company will be transferred to KAA at the expiry of the concession term.

In addition, the value was to be determined and agreed upon by the parties which value shall be structured to grant the company an equity of 18 per cent. “The company will be entitled to set the charges it levies from airline and other users for its services at JKIA among other proposed terms of the concession,” reads part of the statement.”

Faced criticism

Onyonka also wants the Senate Roads and Transport committee chaired by Kiambu Senator Karungo Wa Thang’wa to explain the government’s plans to provide free land to the company for a city-side development on public land, which may lead to land issues in areas surrounding JKIA.

“We must not allow the auctioning of our International Airport, JKIA. They wanted to privatise it, they failed now they are trying to enter into backdoor deals with international firms in total disregard of the law,” said Onyonka.

JKIA has long faced criticism over issues such as leaking roofs, inadequate drainage, and lack of shelter, which have been particularly problematic during the onslaught of heavy rainfall in early March.

It has been established that KAA awarded the initial contract of refurbishing terminal 1A n B to a Chinese company- China Jiangxi International Economic and Technical Cooperation Company Limited at Sh316.95 million.

Already a lawyer Titus Makhanu has written to the KAA Managing Director requesting information regarding the privately initiated proposal (PIP) for the development and operation of JKIA by ADANI Airports Holding Limited.

In a letter dated July 17, 2024, Makhanu claimed that after the lapse of the 30 years’ period, ADANI Airports will own 18 per cent Equity in the project for life in spite of not funding anything. “This is absurd. Considering that the project is of serious public interest and stake, urgently supply us with the information failing which, you may not withstand the next cause of action,” stated Makhanu.