October 4, 2024
Reasons why The Adani JKIA deal is necessary Says Isaac Mwaura

Reasons why The Adani JKIA deal is necessary Says Isaac Mwaura

Reasons why The Adani JKIA deal is necessary Says Isaac Mwaura

The government has sought to clarify why an ongoing deal to upgrade the JKIA is necessary amid claims that the airport has been sold to an Indian investor.

Government spokesman Isaac Mwaura while dismissing the reports said the deal is a public-private partnership whose goal is to modernise the JKIA to international standards.

“Jomo Kenyatta International Airport (JKIA), a key national asset constructed in 1978 and managed by the Kenya Airports Authority (KAA), has seen significant infrastructure deterioration over the past 45 years,” Mwaura said.

In the deal, the government intends to bring on board Indian-based Adani Group Holdings to undertake the refurbishment works in a process Mwaura says is rigorous.

Mwaura listed four reasons the government has decided to modernize JKIA by bringing in the Adani Group Holdings.

Mwaura said the current state of JKIA is unable to support the growing passenger and cargo traffic.

According to him, the traffic has surged beyond its 7.5 million passenger capacity to 8.6 million last year.

“This is inconsistent with Nairobi’s role as a major hub for multilateral and international organizations, similar to cities like Geneva and New York, and is further strained by increased economic activity, tourism growth, and the new Visa-Free regime,” Mwaura added.

He said that incidences such as leaking roofs and power outages have underscored the urgent need for infrastructure upgrades at JKIA.

Mwaura said the airport suffers from insufficient aircraft parking, outdated passenger terminals and baggage handling systems, and inefficient passenger and cargo processing.

These, he said, have resulted in long waiting times and operational disruptions.

“These challenges have caused International embarrassment and have highlighted the need for modernization,” Mwaura said.

To modernize the airport, Mwaura said that the government has prioritized the development of a new passenger terminal, refurbishment of existing terminals, construction of a second runway, and enhancement of cargo facilities.

He said the upgrades are part of the Cabinet-approved National Aviation Policy and JKIA’s Medium-Term Investment plan.

“The government is committed to transparency and accountability throughout the process, which will include public-private partnerships and rigorous oversight at every stage,” he added.

The Indian multinational has submitted a proposal to the Kenya Airports Authority (KAA) to take over JKIA in a 30-year concession arrangement that involves upgrading the facility.

Adani plans to invest up to $750 million (about Sh96.6 billion at the current exchange rate), in the construction of a second runway; a new passenger terminal, an associated apron, and taxiway systems among other developments, in a build-operate-transfer module that will allow it recoup its investment.

The proposed agreement includes raising airport charges to compete with regional facilities and a fixed concession fee to the Kenya Airports, a move that has widely been criticized by Kenyan lobby groups, led by the Kenya Aviation Workers’ Union (KAWU).

Reasons why The Adani JKIA deal is necessary Says Isaac Mwaura