Prime Cabinet Secretary Musalia Mudavadi has stated that the Kenyan government has not finalized any agreements with Adani Airports Holdings Limited regarding the proposed upgrade of Jomo Kenyatta International Airport (JKIA). Mudavadi clarified that Adani Holdings’ Privately Initiated Proposal (PIP) is currently under review and negotiation, following the Public-Private Partnerships (PPP) Act’s legal framework. He emphasized that no terms have been agreed upon yet and that the process will ensure Kenya’s national interests are prioritized.
Emphasis on Transparency and Accountability
“For the avoidance of any doubt, all terms and conditions of the proposed arrangement are subject to negotiation in accordance with the provisions of the PPP Act, and no terms have been agreed upon yet,” Mudavadi stated. He assured that any agreement would include safeguards to hold the private party accountable for its obligations and ensure the project aligns with national interests.
Due Diligence and Suitability Assessments
Mudavadi also emphasized that the planned expansion and modernization of JKIA would comply strictly with the Constitution and legal frameworks established by the PPP Act. He assured the public that a thorough due diligence investigation would be conducted to assess Adani Holdings’ suitability for the project. Should the company be deemed unsuitable, the government will explore other viable options.
Commitment to International Standards
Furthermore, Mudavadi reassured that all international obligations and regulations would be adhered to throughout the project. “We assure the public that every step of this project will undergo rigorous review and scrutiny. The Government is committed to maintaining transparency and accountability throughout the process,” he said.
Addressing Infrastructure Delays
Addressing concerns about JKIA’s current state, Mudavadi noted that the airport is ten years behind its development schedule, according to its long-term master plan. This delay has caused the national asset to lag behind regional competitors in infrastructure quality, innovation, and technology. Issues such as leaking roofs, inadequate aircraft parking bays, outdated passenger terminals, and long waiting times highlight the need for a significant upgrade.
Exploring Public-Private Partnerships
Given Kenya’s current fiscal constraints due to public debt, Mudavadi explained that the government is considering Public-Private Partnerships as a viable option for infrastructure investment, as outlined in the Budget Policy Statement 2024. This statement comes in response to recent online rumors suggesting that JKIA had been leased to a foreign entity, which Mudavadi dismissed as unfounded.
