Adani Group responds to JKIA 30-year lease claims

By Peter Ochieng

Indian firm, Adani Airport Holdings Limited has responded to claims of being leased the management of the Jomo Kenyatta International Airport (JKIA), for the next 30 years.

Through a replying affidavit to the case filed by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) against the airport’s takeover, the firm said the project is still at the review and due-diligence stage.

It dismissed statements by KHRC and LSK that JKIA, that the busy airport has already been leased for 30 years, terming the report as a misrepresentation of facts.

The company said it paid Sh6.47 million review fee to the Kenyan government through the Public Private Partnerships Facilitation Fund, alongside submitting the relevant documents for its controversial Privately Initiated Proposal (PIP), as part of its Sh242 billion proposal to take over the airport.

“Upon submission of the PIP, the 5th respondent (Adani Airport Holdings Limited) duly paid a review fee of USD 50,000 to the Public Private Partnership Facilitation Fund as required by the law,” the company said.

“The 5th respondent also provided all the necessary pre-approval documents including incorporation and corporate documents, tax compliance documents and financial documents to aid the PPP (Public Private Partnership) Directorate, in coordination with Kenya Airports Authority (KAA), to carry out their due diligence on the proponent.”

KAA, Adani said, wrote back on March 18 confirming receipt of the PIP.

KAA, Adani adds, said it had cleared the project to proceed to the project development phase, that is, the feasibility study phase.

The company then provided a feasibility study report, outlining the environmental and social impact of the project, the financial plan and how the Kenyan public will get value for money from the PIP project.

However, according to the Public Private Partnerships Act, a contracting authority may consider a privately initiated proposal if among others, the project is aligned with national infrastructure and priorities and meets a demonstrated societal need or it provides value for money.

The proposed takeover has attracted public uproar, who are against the ‘deal.' The case will be mentioned on October 8, 2024.