The Jomo Kenyatta International Airport (JKIA) has been facing several structural issues for the past few years from water leakages to frequent power outages.
Kenya’s and indeed the region’s prime aviation hub has huge potential for growth and economic transformation, but a few challenges are stifling this. In March this year, Adani Group submitted a privately initiated proposal (PIP) for a concession to expand and operate JKIA under a “build, operate and transfer” model.
The proposal has sparked unrest among Kenya Airport Authority (KAA) employees, who recently staged a strike over concerns about job security and the implications of Adam’s involvement.
However, the Adani group has signalled flexibility and softened its position after the workers’ standoff, announcing that all KAA employees will continue working under their current terms.
Rather than resisting this change or throwing the baby out with the bathwater, it needs to be only tweaked or negotiated better to be embraced as a catalyst for development and economic growth.
Adani’s investment in JKIA not only holds potential to modernise critical infrastructure but also reflects a broader pattern of positive Indian investments across Africa, including Kenya.
For decades, Indian investments have contributed to Africa’s economic growth, from the retail and hospitality industries to infrastructure and telecommunications. Indian businesses have maintained a reputation for providing sustainable and socially conscious growth.
Companies like Tata, Bharti Airtel, and Mahindra have made strides in building stronger ties with Africa, offering services and products that foster economic development, employment, and skill development.
In Kenya, Indian businesses have played a crucial role in sectors such as healthcare and agriculture. For example, Apollo Hospitals, one of India’s largest healthcare providers, has set up joint ventures to improve access to healthcare services in Kenya.
Indian-owned tea plantations have long employed thousands of Kenyans, contributing to the rural economy. This relationship has been symbiotic, where Indian companies bring expertise, capital, and jobs.
The Adani Group, a global powerhouse with vast experience in infrastructure, port management, and energy, offers Kenya a tremendous opportunity for modernisation. It has transformed multiple airports and ports in India into world-class facilities.
In Mumbai, Mundra and Lucknow, Adani’s investment has created state-of-the-art infrastructure, enhanced efficiency and boosted tourism and trade.
At JKIA, Adani’s involvement will likely bring an infusion of capital for long-needed upgrades, including enhancement of runways, terminals, and cargo facilities.
A world-class airport is crucial for Kenya, which aims to position itself as the business and tourism hub of East Africa.
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The improvements will boost capacity to handle increased passenger traffic, strengthen trade links, and attract foreign investments. This will result in long-term job creation through tourism, hospitality, and ancillary services.
One of the primary concerns of protesters in Kenya has been fear of job losses. However, Adani has been committed to creating jobs, not eliminating them. In its port operations in India, Adani has not only hired local workers but also invested in skill development and training to ensure employees are prepared for new technologies.
In Kenya, Adani can adopt a similar approach. By upgrading the airport’s operations, it will create new roles in administration, logistics, and customer service.
India and Africa share a long history of cultural and economic ties, with India emerging as a key partner in Africa’s development trajectory. Indian businesses have been valued for their collaborative approach, focusing on long-term, mutually beneficial relationships.
Adani’s takeover of JKIA should be viewed not as a threat but as an opportunity for Kenya to leapfrog into a new era of economic development.
Past Indian investments in Kenya and across Africa have been instrumental in driving growth and fostering innovation. Adani’s presence will likely have similar positive outcomes.