NAIROBI, Kenya Sep 14 – Fresh details have emerged revealing that Adani Airport Holding Limited has requested tax exemptions as part of its concession agreement for the planned takeover of Jomo Kenyatta International Airport (JKIA).
Transport and Roads Cabinet Secretary Davis Chirchir disclosed that the Indian firm is seeking a tax holiday to recover its investment in the Sh230 billion deal.
Chirchir explained that the request is aimed at maximizing investment returns. “They are looking to maximize their investment, and if granted a tax holiday, they could potentially recover their money more quickly,” he said during a senate committee meeting.
Nairobi Senator Edwin Sifuna raised concerns about the specifics of Adani’s tax exemption request. Henry Ogoye, Acting Managing Director of the Kenya Airports Authority (KAA), confirmed that Adani had requested a tax waiver for the 30-year concession agreement, which involves building, managing, and operating the airport. Ogoye noted that the request would follow government procedures and was not considered a “deal breaker.”
The proposal has sparked debate, particularly given Kenya’s current liquidity challenges. Despite this, Ogoye emphasized that the decision on the tax exemptions would ultimately be made by the government.
Chirchir also revealed that the government is conducting due diligence to assess Adani’s financial and technical capacity. Contrary to reports of a finalized concession deal, Chirchir clarified that only a “Head of Terms” agreement has been reached, with further due diligence and stakeholder engagement required.
Senators voiced concerns about the transparency of the process. Narok Senator Ledama Ole Kina questioned Adani’s involvement due to allegations of corruption in other countries and expressed unease about the detailed insider information Adani had on JKIA’s challenges.
In response, Chirchir defended the process, highlighting Adani’s experience in managing major airports, including Mumbai, as a factor in their consideration. He assured that thorough due diligence would continue before any final agreement is reached.
Source: capitalfm
