Adani's JKIA takeover proceeds despite disquiet

The clock continues to tick towards the planned take-over of Kenya's largest international airport JKIA with Adani Enterprises, the Indian firm poised to be handed the operations and the management of the regional hub, setting up a Kenyan subsidiary ahead of the November take-over.

Adani has now incorporated a local firm dubbed Airports Infrastructure PLC in fillings done with the National Stock Exchange of India.

In their papers, the new subsidiary will take over, operate, maintain, develop, design, construct, upgrade, modernise and manage the airports. This is an indication that the deal is already on the runway for take-over.

With the deal shrouded in secrecy, the Kenya Airport Workers Union (KAWU) is up in arms over the uncertainty of their jobs.

The airport workers staged a protest at the JKIA on Monday to oppose the public-private partnership that would allow Adani Group Holdings to take over operations at one of East Africa's busiest airports.

In a letter to Kenya Airports Authority and copied to Transport Cabinet Secretary Davis Chirchir, KAWU wants an immediate stoppage of all engagements with the Indian-based firm.

The Adani-JKIA takeover push that is causing jitters, says in part, that the government would grant concession to Adani to finance, build and operate the project for 30 years, and then give the company an equity stake in perpetuity.

In addition, a concession agreement seeking an expected 18 per cent annual return on investment.

To sweeten the deal, Adani proposes a Ksh.97 billion investment in developing a new terminal building, associated apron, taxiway system and two rapid exit taxiways.

The airport workers claim the takeover push is being hurried with already a team of 16 from KAA jetting out of the country for India on Tuesday for due diligence.

Workers are also raising concerns over possible job losses occasioned by new management as well as a review of existing contracts with uncertainty in projected salary and allowances reviews.

In the contract, certain employees will be transferred to Adani during the transition period, with KAA expected to retain or transfer the remaining employees to another place of employment.