No deal with Adani yet, Mudavadi says after uproar by Kenyans

By Antynet Ford

The government now says no agreement has been signed yet with Adani Holdings for the upgrading of the Jomo Kenyatta International Airport (JKIA)

Prime Cabinet Musalia Mudavadi today revealed that the proposal to have Adani upgrade the airport is undergoing due process including reviews and negotiations in compliance with the Public-Private Partnerships (PPP) Act.

“For the avoidance of any doubt, all terms and conditions of the proposed arrangement are subject to negotiation by the provisions of the PPP Act and no terms have been agreed upon yet.” Musalia stated.

He highlighted that the interest of the country shall come first in the deal.

“As and when the terms are agreed, there shall be appropriate safeguards to ensure that Kenya’s national interest prevails and that the private party is held fully accountable for the performance of its obligations.” He added.

Mudavadi who doubles as the foreign affairs CS noted that the country is currently facing a tight fiscal space due to the public debt burden and it was therefore prudent to look at the option of Public-Private Partnerships.

He said this is the direction the government took in its Budget Policy Statement 2024, to have additional infrastructure investments.

The Prime CS assured that a detailed investigation would be conducted to determine Adani Holdings’ suitability as investors in the JKIA upgrade project.

This comes after an uproar online after claims emerged that the facility had been leased to the foreign entity.

In May this year, the Ministry of Transport unveiled plans for a new terminal at Jomo Kenyatta International Airport (JKIA) to combat future flooding.

The move was prompted by recent water leakage and flooding in sections of the airport, which is East Africa’s main hub.

The new terminal would be built through a Public-Private Partnership (PPP) model, to have a fully operational facility within the next three years.

JKIA, the biggest and busiest airport in the country, has faced myriads of challenges with the latest revelations of a leaking roof going viral.

Last year, the Ministry of Transport already carrying out feasibility studies that will confirm the actual cost of constructing the new airport.

It was estimated the construction of an international airport with basic components – runway, hangar, parking lot, terminal building and taxiway – could cost about Sh15 billion.