The Kenya Airports Authority (KAA) has informed lawmakers that it will take 50 years to raise the Sh200 billion needed for the expansion of Jomo Kenyatta International Airport (JKIA), which is being funded by Adani Airports Holdings Ltd. This information was presented during a session with the Parliamentary Committee on Implementation.
Transport Secretary Mohamed Daghar stated that Adani Airports intends to invest Sh200 billion over the 30-year agreement. He explained that KAA generates only Sh4 billion in actual revenue annually, which significantly limits its capacity to fund such extensive improvements at the airport.
“Adani plans to enhance JKIA for Sh200 billion under a 30-year agreement. We do not have the financial capacity to invest this amount. KAA currently generates total revenues of Sh4 billion each year, while we need Sh200 billion to develop infrastructure at JKIA,” Daghar told the committee.
Originally designed to handle 7.6 million passengers annually, JKIA now accommodates about 8.2 million passengers, indicating a need for infrastructure improvements. Daghar noted that the KAA has fallen behind by ten years in upgrading the airport facilities.
He pointed to a significant fire incident at the airport in 2014 and the cancellation of the proposed Greenfield Terminal project as contributing factors to the current congestion at JKIA. “Adani Airports Holdings Limited will invest funds without any financial input from the government,” he stated.
Daghar added that Adani would also pay agreement fees to KAA over the 30 years, even as they recoup their investments. His statements were in response to concerns raised by Embakasi West MP Mark Mwenje about whether the Adani Airports deal would favor Kenya Airways or allow competition from Indian and Asian airlines at JKIA.
Daghar appeared before the committee alongside Kenya Airways CEO Alan Kilavuka and KAA Acting Director General Henry Ogoye. He also mentioned that the proposal for a public-private partnership with Adani Holdings Limited is currently in the High Court.
The plan to lease JKIA to Adani Airports Holdings Limited, a subsidiary of the Adani Group, came to light in July this year. The KAA had initially approved the arrangement in secrecy before a court order halted the deal.
Table: Key Details of the Adani Airports Agreement
Aspect | Details |
---|---|
Investment Amount | Sh200 billion |
Duration of Agreement | 30 years |
Annual Revenue of KAA | Sh4 billion |
Current Passenger Capacity | 8.2 million |
Original Design Capacity | 7.6 million |
Delay in Upgrades | 10 years |
Legal Status | Under review in High Court |
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