Kenya Airports Authority responds to rumors on plans to sell JKIA to Andani Airport Holdings

Nairobi, 

Wednesday, 24 July, 2024 

McCreadie Andias 

The Kenya Airports Authority has come clear to respond to allegations that the Jomo Kenyatta International Airport (JKIA) had been sold to a private company, the Andani Airport Holdings Limited .

KAA in a statement released on Wednesday, 24 July, 2024, Noted that Andani Airport Holdings limited only came to the rescue of the airports aging infrastructure as a patner but not a buyer as alleged.

KAA noted that the Airport is a national asset build in 1978 and it's aging infrastructure needed urgent repair and refurbishment to compete with other upgraded and state of the art regional airports. 

According to KAA, the the attendant investment requirement could not be funded by the fiscal constraints without private partnerships. 

KAA noted that the cabinet had approved the JKIA medium term investment plan covering the upgrade of passagers terminal building which was leaking, runway, taxiway and apron. 

Managing Director Henry Ogore noted that KAA received an investment proposal under the Public - Private partnership ACT 2021 from the Andani Airports Holding Limited, a key airport operator, to invest in new passagers terminal, second runway and refurbishment of the existing facilities at JKIA. 

Ogore added that the proposal will be subjected to technical, financial and legal reviews alongside requisite due processes in accordance to the Public private partnerships Act 2021. 

Thereafter the project agreement will be preceded by shareholder engagement, the national Treasury approval, the attorney General clearance and the cabinet approval. 

The Airport has assured staff that their jobs will not be affected by the investment whilst at the same time, the investment will create new and expanded business opportunities at the Airport. 

This comes days after Kisii Senator Richard Onyonka called on the Senate Standing Committee on Transport for transparency regarding the leasing of JKIA.

"We need a comprehensive disclosure of the terms and conditions of the agreement, including the selection process for Adani Group," he said.

Onyonka stated that the proposed deal involves a 30-year concession under a Build, Operate, and Transfer (BOT) model.  

"The assets developed through capital expenditure by the company will be transferred to KAA at the expiry of the concession term at a value determined and agreed by the parties, which value shall be structured to grant the company an equity of 18 per cent," Onyoka added.

Protesters tried to breach the airport premises on Tuesday as part of the ongoing Anti - Government protests which aimed at cornering the government to revoke the deal.