JKIA lease deal: Adani wants 30 acres to build 'city' near airport

Adani Airport Holdings Limited reportedly seeks to acquire 30 acres of land near the Jomo Kenyatta International Airport (JKIA) to host state-of-the-art recreational facilities aimed at shaping the identity of the airport.

A feasibility report submitted by the Indian conglomerate to the Kenya Airports Authority (KAA) has revealed key details regarding the deal that has mostly been shrouded in secrecy. 

According to the report, Adani submitted a proposal to the government to develop 30 acres of land near the airport to build “an airport city” or City Side Development (CSD) that targets three key sectors; hospitality, retail, as well as food and beverages. 

By offering diverse facilities, Adani aims to enhance JKIA's identity by fulfilling the demands of the airport passengers and also Kenyans at large.

"These proposed developments should not be just dependent upon the passenger traffic of the airport, but it will fulfill an inherent demand generated within Nairobi," the report reads in part.

"Adani Airports aims to create unique and futuristic facilities and explore the development of concepts such as hospitality district, world class retail and placemaking initiatives such as mixed use development."

The Indian conglomerate projects the land to be fully developed by the end of Financial Year 2029.

In the proposal, Adani aims to revitalise JKIA in three phases, estimating the entire renovation project to be done by 2050.

The first phase involves developing the new terminal building, associated apron, taxiway system, two rapid exit taxiways, landside road network system, car parking facility and utility block. The phase is expected to be completed by Financial Year 2028.

The second phase includes the construction of remote stands, taxiways and landside roads. It is expected to be completed by Financial year 2035. 

The final phase will involve expansion of the terminal to enhance passenger handling capacity. This is expected to be operational in the year 2049. 

Adani conducted the feasibility report following an initial approval from KAA for the Privately Initiated Proposal (PIP) deal. 

This is in line with Section 40 of the Public Private Partnership (PPP) Act that allows a private investor to submit a PIP for projects aligned with national infrastructure priorities to address public needs. 

The Adani takeover of the JKIA has however been opposed, with aviation workers staging protests on Wednesday, calling for the deal to be terminated.

This paralysed normal operations at the airport, leaving passengers stranded. To resolve the situation, Transport Cabinet Secretary Davis Chirchir agreed to share key documents of the proposal. 

"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.

He, however, insisted that no deal has been signed as the proposal is still under review.