The Adani Airport Holdings Ltd (AAHL) has proposed a public-private partnership to upgrade Nairobi's Jomo Kenyatta International Airport (JKIA), including a new terminal, a second runway, and refurbishment of existing facilities. Kenya Airports Authority (KAA) confirmed receiving the proposal, emphasising adherence to the Public Private Partnerships Act 2021. The airport, vital for Kenya Airways and the regional exports, ranked seventh in African passenger traffic in 2022. Despite local protests over transparency, KAA assured that the airport isn't being sold and emphasised that funding requires private investment. The proposal will undergo comprehensive reviews and require stakeholder engagement and multiple government approvals.
The Kenya Airports Authority (KAA) announced receiving an investment proposal from Adani Airport Holdings Ltd (AAHL) under the Public Private Partnerships Act 2021 for the upgrade of Nairobi's Jomo Kenyatta International Airport (JKIA). The proposal includes the construction of a new passenger terminal, a second runway, and the refurbishment of existing facilities. This development follows the Kenyan government's approval of a medium-term investment plan aimed at enhancing the airport's infrastructure, including the terminal building, runway, taxiway, and apron.
Currently, AAHL manages seven airports in India and is involved in developing the Navi Mumbai airport. Additionally, the group has recently signed an agreement to acquire a 95% stake in a container terminal in Tanzania, marking a significant push into the African market.
JKIA is a crucial hub for Kenya Airways and a vital gateway for cargo, particularly for the export of cut flowers. In 2022, it was the seventh busiest airport on the continent in terms of passenger traffic. Despite local protests regarding the transparency of the process, KAA assured the public that the airport is not being sold, dispelling allegations of a secret deal.
The investment proposal from Adani Group will undergo thorough technical, financial, and legal reviews as stipulated by the Public Private Partnerships Act 2021. KAA's Managing Director and CEO, Henry Ogoye, emphasised that the proposal is a necessary step as the airport's upgrade cannot be financed without private funding. He also reassured that there would be no job losses as a result of this initiative.
The project agreement will require multiple approvals, including stakeholder engagement, clearance from the national treasury, endorsement by the attorney general, and ultimately, cabinet approval. This comprehensive review process aims to ensure that all legal and procedural standards are met before the project can commence.
Adani Group declined to comment on the proposal, reflecting its usual practice of maintaining confidentiality in ongoing negotiations. Nonetheless, this move highlights Adani's strategic expansion into Africa, aiming to enhance its global footprint in airport management and infrastructure development.
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