KENYA : The hearing of a petition challenging the proposed leasing of Jomo Kenyatta International Airport, JKIA, to Indian conglomerate Adani Group will commence on December 17, 2024.
Adani Group's proposed takeover of Kenya's Jomo Kenyatta International Airport (JKIA) through a Public Private Partnership has been met with more public criticism after new reports emerged.
A Court case has shed more light on the controversial multi-billion shilling deal, with claims that Adani, is not investing it's own funds, in the Kenyan International Airport.
Adani Airports Holdings, a subsidiary of the Adani Group, a multinational conglomerate, has proposed refurbishing the Kenyan airport for Ksh 242.1 billion.
In the PPP deal, Adani proposes to operate JKIA under a 30-year concession, during which the Indian firm would pay the Kenya Airports Authority, KAA, a fixed annual fee.
According to the Petitioner, Adani will not be investing the Ksh 241 Billion from their accounts but instead will be using the JKIA airport’s assets as collateral to secure loans.
The legal battle sheds light on significant concerns regarding transparency, public interests, and the potential ramifications for the Kenyan economy.
According to the lawsuit, the Kenyan government will hand over JKIA’s title deed to Adani and is expected to be a Guarantor to the said loans.
In the JKIA takeover bid proposal from Adani Group, the Indian Company will pay sh 6.4 Billion annually to the Kenyan Government.
Adani Group, claims it will raise this money through Fees the company will charge the Kenyan Airport, JKIA, users.
The company estimated it's first JKIA Control year revenue at $163 million (KSh 21.3 billion). Out of the revenue, $47 million (KSh 6.2 billion) will go to the Kenyan government.
Adani Group proposed a revenue estimate of $290 million (KSh 37.9 billion), out of which $52 million (KSh 6.8 billion) will go to the government in 2030.
According to the documents, Adani Group offers to pay KAA Sh6 billion per year for the first five years, with the fee rising to Sh6.7 billion by 2035 and climbing further in subsequent years.
By the 30th year of the deal, Adani Group projects the annual concession fee to reach Sh9.8 billion.
Other revenue estimates include KSh 96.8 billion in 2045 and KSh 157 billion in 2054, earning Kenya between KSh 9 and KSh 10 billion in the respective years.
The petition will be heard before three Judge Bench consisting of Justices Jairus Ngaah, Moses Ado and Lucy Njuguna.
The bench has also listed the same date for hearing a preliminary objection by some of the parties, which cites a lack of jurisdiction by the High Court to hear the matter.
The case was filed before Justice John Chigiti who issued an order prohibiting any person from implementing or acting on the privately initiated Adani proposal over JKIA pending the hearing and determination of the matter.
However, the Executive through the Attorney General has since filed an application seeking to have those orders set aside.
Treasury, Cabinet Transport Davis Chirchir, Attorney General, Public Private Partnership Directorate, and public-private partnership committee have since filed a preliminary objection to the case, saying the court has no jurisdiction to hear and determine the matter.