Kenyan Court Halts Adani's Proposal to Operate Nairobi's Main Airport
Tuesday, 10 September 2024, 10:00 IST
A Kenyan court has suspended the government’s plan to lease the operation of Jomo Kenyatta International Airport (JKIA) in Nairobi to India’s Adani Airport Holdings Ltd. for 30 years. The High Court’s ruling prohibits any action on the proposal until a final decision is made. The case was filed by the Law Society of Kenya and the Kenya Human Rights Commission, which argue that the lease violates the country's constitution.
Faith Odhiambo, president of the Law Society of Kenya, confirmed the court's order, stating that no further steps can be taken on the proposal until the matter is resolved. The petitioners claim that leasing the airport to Adani Airport is unconstitutional, as it undermines principles of governance, accountability, transparency, and the responsible use of public funds.
Adani Airport Holdings, owned by Indian billionaire Gautam Adani, did not immediately respond to requests for comment on the court's ruling.
The government’s plan involves Adani upgrading Kenya’s largest airport and East Africa’s busiest aviation hub. The project, under a build-operate-transfer model, includes the construction of a second runway and a new passenger terminal. However, critics argue that the $1.85 billion deal poses significant risks to the Kenyan public, including potential job losses and fiscal strain. They contend that Kenya has the capacity to independently fund the expansion of JKIA without leasing it to a private entity for such a lengthy period.
The Kenya Airports Authority has defended the proposed deal, stressing the urgent need to upgrade the airport due to its overcapacity. Acting Managing Director Henry Ogoye stated in July that the proposal would undergo rigorous technical, financial, and legal reviews to ensure compliance with public-private partnership laws.
Ogoye further emphasized that the investment required to modernize the airport is substantial and that the government, facing fiscal constraints, would need to rely on private funding. Adani Airports, which manages a portfolio of eight airports in India and controls more than 50% of the top domestic air routes, is seen as a strategic partner in the expansion.
The court’s ruling temporarily halts the project while legal challenges continue to unfold, with the potential to reshape the future of Kenya’s busiest airport.
Faith Odhiambo, president of the Law Society of Kenya, confirmed the court's order, stating that no further steps can be taken on the proposal until the matter is resolved. The petitioners claim that leasing the airport to Adani Airport is unconstitutional, as it undermines principles of governance, accountability, transparency, and the responsible use of public funds.
Adani Airport Holdings, owned by Indian billionaire Gautam Adani, did not immediately respond to requests for comment on the court's ruling.
The government’s plan involves Adani upgrading Kenya’s largest airport and East Africa’s busiest aviation hub. The project, under a build-operate-transfer model, includes the construction of a second runway and a new passenger terminal. However, critics argue that the $1.85 billion deal poses significant risks to the Kenyan public, including potential job losses and fiscal strain. They contend that Kenya has the capacity to independently fund the expansion of JKIA without leasing it to a private entity for such a lengthy period.
The Kenya Airports Authority has defended the proposed deal, stressing the urgent need to upgrade the airport due to its overcapacity. Acting Managing Director Henry Ogoye stated in July that the proposal would undergo rigorous technical, financial, and legal reviews to ensure compliance with public-private partnership laws.
Ogoye further emphasized that the investment required to modernize the airport is substantial and that the government, facing fiscal constraints, would need to rely on private funding. Adani Airports, which manages a portfolio of eight airports in India and controls more than 50% of the top domestic air routes, is seen as a strategic partner in the expansion.
The court’s ruling temporarily halts the project while legal challenges continue to unfold, with the potential to reshape the future of Kenya’s busiest airport.
