Nairobi, Kenya, Sep 13 – Lawmakers have opposed the proposed takeover of Jomo Kenyatta International Airport (JKIA) by Adani Airport Limited Holding, accusing the concession agreement of being a scheme to siphon public funds.
The opposition follows revelations of internal conflicts and discord within the Kenya Airports Authority, the current custodian of the airport, during negotiations that began in March this year.
Appearing before the Senate Committee on Roads, Transport, and Housing, Cabinet Secretary Davis Chirchir urged senators to allow the conclusion of due diligence on the concession agreement.
“I wish to remind us of the significant benefits this proposed model is expected to bring to the nation, including a modernized facility to balance capacity, leading to operational excellence and regional competitiveness,” said Chirchir.
The Transport and Roads Cabinet Secretary warned senators against driving away investors before due diligence is completed, arguing that it would take the country 60 years to upgrade the airport using debt financing.
Narok Senator Ledama ole Kina questioned why the government was risking an asset worth trillions to a private company that has been flagged for misconduct in other countries.
“I would like to ask the Cabinet Secretary, how did Adani, an Indian conglomerate, obtain insider information about the issues at our airports? If you Google Adani, you will find allegations of corruption and violations of international protocols in various countries,” said Ledama.
Nairobi Senator Edwin Sifuna questioned the government’s decision to move away from a Public-Private Partnership (PPP), which was initially intended for the project.
Sifuna suggested that the ministry had waited for whistleblowers to expose the ongoing negotiations over the JKIA deal.
“Last year, CS Murkomen said the upgrading of JKIA would be done under a PPP. Why did that change? Did the government go against its own policy?” Sifuna asked.
Marsabit Senator Mohammed Chute likened the Adani deal to past fraudulent schemes like Goldenberg and Anglo Leasing, calling for its abolition.
“Why should we negotiate with Adani, which seems to be taking our resources to India? There’s no way someone bartering a goat could expect to exchange it for a camel. Why did the government proceed with these negotiations, given that the deal seems unfavorable to Kenyans?” asked Chute.
Busia Senator Okiya Omtatah claimed that the JKIA deal was already concluded, describing it as a potential avenue for money laundering, citing Adani’s controversial dealings in other countries.
Nandi Senator Samson Cherargei added that Swiss authorities had frozen Adani’s accounts, holding Sh300 million, and called on Chirchir to cancel the deal.
Adani submitted a privately initiated proposal (PIP) to the Kenya Airports Authority (KAA) in March this year to operate JKIA under a 30-year concession.
The Indian firm financial proposal shows that Sh 230 Billion will be spent on the development of a new terminal building, associated apron and taxiway system and two rapid exit taxiways.
The Indian company is proposing a city-side development consisting of hospitality, business centres and other amenities accessible to travellers and city residents.
Last week,Adani Enterprises has set up a Kenyan subsidiary as it steps up its push to take over the running of Jomo Kenyatta International Airport, amid continued opposition among transport workers to the takeover by the Indian conglomerate.
The flagship company of Gautam Adani’s sprawling corporate giant incorporated “Airports Infrastructure PLC (AIP)” in Kenya on August 30, according to a filing with the National Stock Exchange of India in Mumbai.
Source: capitalfm
