The Kenya Airports Authority (KAA) has announced it has received an investment proposal from Adani Airport Holdings Limited aimed at modernizing the aging infrastructure of Kenya’s busiest airport, which has been in operation since 1978.
KAA Acting CEO Henry Ogoye said that the outdated infrastructure is jeopardizing the country’s regional competitiveness, making a major overhaul essential.
Ogoye explained that a comprehensive upgrade project, the JKIA Medium Term Investment Plan, which has been approved by the Cabinet, demands substantial capital investment.
However, he noted, the government is unable to finance this project due to current fiscal limitations.
According to the KAA, Adani’s proposal encompasses substantial enhancements to the passenger terminal building, runway, taxiway, and apron.
“The Cabinet approved the JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway and apron, ” the KAA said.
“The attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding.”
KAA stated that the partnership with Adani, established under the Public Private Partnerships Act 2021, will undergo thorough technical, financial, and legal reviews to ensure compliance with the act.
“The Project Agreement will also involve thorough stakeholder engagement, approval from the National Treasury, clearance from the Attorney General, and final Cabinet approval.” Ogoye added.
KAA also addressed concerns raised by staff and the airport business community, assuring them that no jobs would be lost due to the planned upgrades. According to the Authority, the expanded facilities will generate new business opportunities and benefits for airport operators and the broader community.
On Monday, Prime Cabinet Secretary Musalia Mudavadi sought to dispel fears that it was planning to sell the airport amid concerns of a shadowy deal.
Mudavadi informed the National Assembly Budget and Appropriations Committee that the sale of such a valuable asset could only occur after public memoranda and parliamentary approval.
The Prime CS clarified that instead of selling the airport, there are plans to modernize it and construct a new terminal.
“The Kenya Airport Authority (KAA) must look at its investment programme very carefuly, make sure that everything is transparent. So that during the expansion process of the second terminal, let it be done through the legal process so that everybody knows what is going on,” he added.
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