Prime Cabinet Secretary Musalia Mudavadi has stated that the government has not yet signed any agreements with Adani Airports Holdings Limited regarding the upgrading of Jomo Kenyatta International Airport (JKIA) infrastructure.
In a clarification concerning the group’s Privately Initiated Proposal (PIP), Mudavadi explained that Adani Holdings’ proposal is currently undergoing due process, including reviews and negotiations, in accordance with the Public-Private Partnerships (PPP) Act.
He emphasized that the country’s interests would take precedence in any potential deal.
“For the avoidance of any doubt, all terms and conditions of the proposed arrangement are subject to negotiation in accordance with the provisions of the PPP Act and no terms have been agreed upon yet,” Mudavadi said.
“As and when the terms are agreed, there shall be appropriate safeguards to ensure that Kenya’s national interest prevails and that the private party is held fully accountable for the performance of its obligations.”
He stressed that the proposed expansion and modernization of JKIA will be carried out in strict compliance with the Constitution and the legal frameworks established by the PPP Act.
The Prime Cabinet Secretary assured the nation that a comprehensive due diligence investigation will be conducted to assess Adani Holdings’ suitability as investors in the JKIA upgrade project.
He mentioned that if the investigations find them unsuitable, the government will seek other appropriate options to carry out the project. Mudavadi also highlighted that the government will ensure adherence to all international obligations and regulations.
“We assure the public that every step of this project will undergo rigorous review and scrutiny. The Government is committed to maintaining transparency and accountability throughout the process.”
Mudavadi stated that JKIA is 10 years behind its development schedule as outlined in its long-term master plan. He noted that this delay has caused the national asset to fall behind regional competitors in terms of quality infrastructure, innovation, and technology.
He pointed out that various incidents have highlighted the urgent need to upgrade the airport to a modern standard, mentioning issues such as leaking roofs, insufficient aircraft parking bays, outdated passenger terminals and baggage handling systems, as well as long waiting times.
Mudavadi acknowledged that the country is currently facing a tight fiscal situation due to the public debt burden, making it prudent to consider Public-Private Partnerships as a viable option. He indicated that this approach aligns with the direction outlined in the government’s Budget Policy Statement 2024 to attract additional infrastructure investments.
This clarification comes in response to weeks of online claims that the airport had been leased to a foreign entity.
