Air Operators ask for review of JKIA takeover by Adani

Air Operators ask for review of JKIA takeover by Adani

The Board of the Kenya Association of Air Operators (KAAO) has called for a thorough review of the controversial $1.85 billion (about Ksh.239 billion) takeover of the Jomo Kenyatta International Airport (JKIA) by Adani Holdings.

KAAO said in a statement on Wednesday that the bidding process of procuring the Public-Private-Partnership did not meet the required criteria and breached the provisions of the PPP Act.

They added that the stakes for JKIA's takeover are too high and a competitive bidding process should be used to find the appropriate investor.

"The Board further opined that a clear vision of the end game for Kenya needed to be articulated, starting with adherence to the principles laid out in the National Aviation Policy and a well-developed JKIA masterplan which should form the business case for a concession process," read the statement in part.

KAAO argued that the move will be vital for ensuring that JKIA maximizes its full potential as a world-class aviation hub and makes it a formidable regional competitor. 

They also questioned lack of prior stakeholder engagement on the takeover before giving Adani the nod.

The court has halted all further action on the proposed lease of JKIA to Adani until a case lodged by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) on September 9 blocking the deal is resolved. 

It is up for mention on October 8.

Aviation workers held a shutdown strike on September 11, forcing the government to make an agreement that the workers would have veto power over the Adani deal, hence no agreement would be signed by the government without their involvement and green light.

The official documents of the proposed Adani deal have been availed to the aviation workers as per their demands, and they would have a 10-day window to go through it and raise their concerns where necessary.

Adani is also involved in a Ksh.94 billion deal with the Kenya Electricity Transmission Company Limited for the construction of 422 kilometres of power transmission lines in the country.

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JKIA Citizen Digital KAAO Adani Holdings

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