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Reading: At the heart of the contentious Adani-JKIA story is Ruto’s adviser.
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Newsunplug Kenya > Blog > News > At the heart of the contentious Adani-JKIA story is Ruto’s adviser.
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At the heart of the contentious Adani-JKIA story is Ruto’s adviser.

Ivy Irungu
Last updated: October 15, 2024 11:38 am
Ivy Irungu
9 months ago
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New details have emerged in court suggesting that the government may have been quietly engaging with the Adani Group to lease Jomo Kenyatta International Airport (JKIA) for over a year. In a case involving President William Ruto’s principal economic advisor, David Ndii, it is alleged that the Indian conglomerate, through Adani Airports Holding Ltd, submitted a privately initiated proposal (PIP) for the development of JKIA under a public-private partnership arrangement to the Kenya Airports Authority (KAA) on April 25, 2023.

According to Tony Gachoka, who represents the Jubilee Party, Wiper Party, Democratic Action Party Kenya (DAP-K), and Mount Kenya, the Adani PIP was copied to Ndii, the National Treasury, and the Ministry of Roads and Transport. However, Gachoka’s lawyer, Ndegwa Njiru, claimed they remained silent about the deal until this year when Adani allegedly floated its PIP.

Adani has argued that it proposed to refurbish JKIA on March 1, 2024, after noticing the airport’s deteriorating condition in media reports. Njiru alleged, however, that the deal was being designed to benefit the firm, stating, “The idea to directly procure the construction of a new passenger terminal at JKIA was done with the Adani Group in mind.” He pointed to a contract dated December 13, 2023, in which KAA procured advisory services for constructing a new passenger terminal building at JKIA.

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Njiru told the court that the advisory team recommended an Airport PPP as more beneficial to Kenya rather than a terminals PIP. “Unsurprisingly, on March 1, 2024, the second respondent submitted to the KAA its PIP for the development of JKIA under PPP arrangements. On the same day, JKIA submitted the said proposal to PS Mohammed Daghar, who in turn submitted it to PS National Treasury Chris Kiptoo. The petitioners earnestly believe these activities did not take place on March 1, 2024, as demonstrated,” Njiru argued.

The court heard that, contrary to the government’s claim that Adani was the only firm interested in developing JKIA, other companies, including Abu Dhabi, China Road and Bridge Corporation, and Motar Etgil Africa/Corporation America JV, had also proposed to develop the airport through PPP. Njiru noted that despite these documents being with the KAA, the government had not disclosed them to the public.

“By a further letter dated June 12, 2023, referencing ‘Proposed Construction of a Second Runway at Jomo Kenyatta International Airport (JKIA),’ PS Mohamed Daghar stated that KAA had not formally submitted the PIP from Adani Airports Holdings Ltd and their preliminary appraisal of the same,” claimed Njiru.

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He further asserted that the PIP for JKIA submitted by Adani is lopsided and undermines Kenya’s public interest. “Despite the government advocating for the firm to take over JKIA for 30 years, no one can determine how much Adani has invested or will invest in the project,” he stated. Njiru alleged that the Indian firm is being handed JKIA without any financial commitment.

“Adani Group PIP does not specify the exact amount to be invested despite the fact that investment is the principal criterion for PPP under the 2011 Policy on PPPs and subsequent legislations. For all practical purposes, the existing and potential revenue of JKIA are simply being transferred to the 2nd Respondent and its undisclosed Kenyan partners to invest for their private gain. This is a clear case of sovereign robbery,” claimed Ndegwa.

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