Adani-JKIA deal: CS Chirchir admits gov't failure, insists no agreement signed

The Kenyan government has reiterated that no formal agreement has been signed with Indian multinational company, Adani Group regarding the proposed Ksh. 260 billion expansion of Jomo Kenyatta International Airport (JKIA).

Transport Cabinet Secretary Davis Chirchir acknowledged the government’s failure to fully disclose details of the deal but emphasized that no binding contract exists.

“Today and over the past few weeks we have attempted to communicate. There was a bit of lapse of communication in the way we have carried the privately initiated investment by Adani in this airport," Chirchir said during a press briefing at JKIA, following a meeting that resolved a strike by aviation workers.

Aviation workers, represented by the Kenya Aviation Workers Union (KAWU), had downed tools for 24 hours in protest of the proposed deal. Operations at JKIA and the fringe airports outside the capital Nairobi were paralyzed leaving travellers stranded.

Chirchir explained that the Public-Private Partnership (PPP) Act permits private investors to submit investment proposals, with subsequent negotiations focusing on parameters such as return on equity and debt-equity ratios.

He noted that the government intends to disclose more details in court, where a case related to the matter is currently being heard.

“From the government position, we are also aware that we have been taken to court. This presents a good opportunity to present all the documents to the court in the form of public participation."

"All documents will be put out and this will help the government continue public participation to ensure everybody gets what the government is trying to do to basically employ the PPP framework to open our infrastructure in roads, airports and schools,” said Chirchir.

Following the resolution of the aviation workers’ strike, the government agreed to share key documents on the Adani proposal with KAWU.

“THAT now we have received the most pertinent documents as requested by the Union. We undertake to go through them within ten (10) working days and flag out areas of our concern which shall immediately be pointed out with a view of jointly engaging in discussion with the Government, Kenya Airways PLC and Kenya Airports Authority,” reads a joint statement by KAA, Kenya Airways and KAWU.

“THAT the meeting shall be immediately convened after the said period of ten (10) working days.”

The joint statement read by COTU Secretary General Francis Atwoli further indicated that the all parties in the matter shall be represented by two people in all further negotiations on the Adani deal.

“THAT the parties (Government/Kenya Airports Authority) shall not enter into final agreement or append their signatures without concurrence with Kenya Aviation Workers Union (KAWU),” added the statement.

Government Spokesperson Isaac Mwaura also spoke on the matter stating: “The Adani proposal is still under consideration; no agreement has been signed.”

“In March 2024, Kenya Airports Authority received a Privately Initiated Proposal (PIP) from Adani Airport Holdings of India under the PPP Act. This proposal is undergoing thorough due process. including stakeholder engagement, National Treasury approval, and Cabinet clearance, as mandated by the PPP Act 2021. No terms have been agreed upon, and all aspects are subject to negotiation,” said Mwaura in a statement.