The government could have been quietly engaging Adani Group to lease Jomo Kenyatta International Airport (JKIA) for over a year, fresh details have emerged in court.
In a case where President William Ruto’s principal economic advisor David Ndii is named as a person who had been aware of the deal, it is alleged that the Indian conglomerate through Adani Airports Holding Ltd - had on April 25, 2023, submitted to Kenya Airports Authority (KAA) a privately initiated proposal (PIP) for development of JKIA under public-private partnership arrangement.
According to Tony Gachoka, Jubilee Party, Wiper Party, Democratic Action Party Kenya (DAP-K) and Mount Kenya, Adani PIP was copied to Ndii, the National Treasury and the Ministry of Roads and Transport.
However, Gachoka’s lawyer Ndegwa Njiru claims that they remained tight-lipped about the deal until this year when Adani allegedly floated its PIP.
Adani in its case claimed that it floated the idea to refurbish JKIA on March 1, 2024, after seeing the deteriorating state of the international airport in the media.
However, the Njiru alleged that the deal was being worked backwards in order to favour the firm. He argued that the idea to directly procure the construction of a new passenger terminal at JKIA was done with the Adani Group in mind.
The lawyer alleged that through a contract dated December 13, 2023, KAA procured advisory services for the construction of a new passenger terminal building at JKIA.
He told the court the team recommended an Airport PPP as opposed to a terminals PIP as the most beneficial to Kenya.
“Unsurprisingly, on March 1, 2024, the second respondent submitted to the KAA its PIP for the development of JKIA under PPP arrangements. On the same day, the JKIA submitted the said proposal to the 9th respondent PS Mohammed Daghar who on the same day submitted the proposal to the PS National Treasury Chris Kiptoo. The petitioners earnestly believe these activities did not take place on 1 March 2024 as demonstrated,” argued Ndegwa.
The court heard that contrary to the government’s claim that Adani was the only firm interested in developing JKIA, other firms had floated their proposals. The lawyer claimed that Abu Dhabi, China Road and Bridge Corporation and Motar Etgil Africa/Corporation America JV had proposed to develop JKIA through PPP. He said that despite the documents being before KAA), the government never disclosed them same to the public.
“By a further letter dated June 12, 2023, referencing "Proposed Construction of a Second Runway at Jomo Kenyatta International Airport (JKIA) the 9th respondent PS Mohamed Daghar stated that the KAA had not formally submitted the PIP submitted by Adani Airport Holdings Ltd and their preliminary appraisal of the same,” claimed Ndegwa..
He further claimed that PIP for JKIA submitted by Adani is lopsided and subversive of Kenya's public interest.
Ndegwa said that despite the government drumming up for the firm to take over JKIA for 30 years, no one can put a finger on how much Adani had invested or will pump to the project.
The lawyer alleged that the Indian firm is being gifted JKIA without paying a penny.
“Adani Group PIP does not specify the exact amount to be invested despite the fact that investment is the principal criterion for PPP under the 2011 Policy on PPPs and subsequent legislations. For all practical purposes, the existing and potential revenue of JKIA are simply being transferred to the 2nd Respondent and its undisclosed Kenyan partners to invest for their private gain. This is a clear case of sovereign robbery,” claimed Ndegwa.
The court heard that the government is going against a 2019 Parliament report that shielded JKIA from privatisation or control by foreigners.
