Fact Check: Court ruling on Privatisation Act 2023 does not impact JKIA-Adani deal

Despite the court’s decision, the JKIA deal remains intact as it is being executed under a Public-Private Partnership (PPP) arrangement, which operates outside the purview of the Privatisation Act.

The PPP model allows a private investor to finance government projects in exchange for revenue collection over an agreed period. 

In the case of JKIA, the 30-year takeover deal with Adani Holdings will follow this structure. Once the lease period expires, the state will reclaim control of the airport, unlike in privatisation where entities are independently owned by private investors.

While the National Treasury and Economic Planning Ministry had listed 11 other entities for privatisation under the now-voided Act, including prominent institutions such as the Kenyatta International Convention Centre (KICC), Kenya Pipeline Company (KPC), and Kenya Seed Company Limited (KSC), the JKIA deal remains separate from this list due to its PPP framework.

The proposed privatisation of these state-owned entities was aimed at generating revenue and reducing the strain on government resources. 

The full list of organisations included the New Kenya Cooperative Creameries (KCC), National Oil Corporation of Kenya (NOCK), Kenya Literature Bureau (KLB), and Mwea Rice Mills Ltd (MRM). 

Additionally, Western Kenya Rice Mills Ltd (WKRM), Numerical Machining Complex Limited (NMC), 35% of Vehicle Manufacturers Limited (KVM), and Rivatex East Africa Limited (REAL) were earmarked for privatisation.

Meanwhile, the JKIA takeover deal, valued at $1.85 billion (Ksh.239 billion), continues to face significant public opposition.

 In light of the controversy, Parliament has directed the Office of the Auditor General to conduct a special audit of the deal and present a report within 14 days. 

The Public Investment and Commercial Affairs Committee has called for a deeper investigation into the specifics of the privately initiated proposal, aiming to shed light on the processes behind the agreement.

As the JKIA-Adani deal progresses under the PPP framework, attention now shifts to the outcome of the parliamentary audit, which may provide further insight into the transaction’s transparency and long-term impact.