In a related development, Kenya’s High Court has placed an interim order on the government’s plan to award a concession of the JKIA to India’s Adani Airport Holdings Ltd for a period of 30 years. This was announced by the court on Monday, and they also allowed no implementation of the proposal until the matter is conclusively resolved.
This is in response to legal suits filed by the Law Society of Kenya and the Kenya Human Rights Commission, which contends that the proposed lease violates the constitution. As the president of the Law Society of Kenya, Faith Odhiambo said that leasing the strategic and profitable JKIA to a private entity is “irrational” and is against principles of good governance, accountability, transparency and prudent use of public funds.
The 1.85 billion USD deal signed between the Kenyan government and Adani Airport Holdings has been described as “unaffordable”, which is likely to cost many jobs, put the public at risk of fiscal loss, and of no value to the taxpayers. The challengers also argue that Kenya is capable of sourcing for funds on its own to expand JKIA without leasing it for thirty years.
In the proposed build-operate deal, Adani’s company would have rehabilitated JKIA, constructed a second runway and develop a new passenger terminal. But the government has defended the deal saying that the airport is congested and requires expansion, which has been opposed by concerns arising from the deal.
Kenya Airports Authority acting Managing Director Henry Ogoye had said in July that the proposal would be subjected to technical, financial and legal analysis to ensure compliance with Public Private Partnership laws. However, the court has brought the deal on halt awaiting further ruling on the same.
The Indian company Adani Airport Holdings, which is owned by Gautam Adani, has not responded to the decision of the Kenyan court.
