ALL BUSINESS LAW & JUSTICE

KENYAN COURT HALTS ADANI’S AIRPORT DEAL PENDING FINAL RULING

KENYAN COURT HALTS ADANI’S AIRPORT DEAL PENDING FINAL RULING
Spread the love

Faith Nyasuguta

A Kenyan court has temporarily blocked the government’s plan to grant India’s Adani Airport Holdings Ltd. a 30-year contract to operate Nairobi’s Jomo Kenyatta International Airport (JKIA). The High Court order prevents any further action on the deal until a final ruling is made, following a legal challenge by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC).

/Indian Web/

The LSK and KHRC argue that the proposed lease violates Kenya’s constitution. In their filings, they describe the deal as “irrational” and contrary to the principles of “good governance, accountability, transparency, and prudent use of public money.” They also claim that the $1.85 billion agreement is “unaffordable” for Kenya, potentially leading to job losses, public fiscal risks, and minimal value for taxpayers.

The organizations maintain that Kenya could independently finance the expansion of JKIA without committing to a long-term lease with Adani Airport Holdings. They further contend that leasing the strategic airport to a private entity undermines public interest.

/Business Today/

Under the proposed build-operate-transfer arrangement, Adani Airport Holdings, led by Indian billionaire Gautam Adani, would be responsible for upgrading JKIA, including constructing a second runway and a new passenger terminal. The Kenyan government argues that these upgrades are urgently needed as the airport currently operates beyond its capacity.

Henry Ogoye, the acting Managing Director of the Kenya Airports Authority, has emphasized that the proposal will undergo thorough technical, financial, and legal reviews to ensure compliance with Kenya’s public-private partnership laws.

Ogoye also noted that the significant investment required for the upgrades cannot be funded without private sector involvement due to prevailing fiscal constraints.

Adani Airport Holdings, part of Gautam Adani’s conglomerate, already manages eight airports in India, handling 23% of the country’s air traffic and serving 20% of its total passenger base. The deal is part of India’s broader push to expand its influence in Africa through infrastructure development and investment.

/Business Insider/

The court’s decision to halt the process has sparked public debate over the government’s transparency and approach to handling national assets. The final ruling will determine whether Adani can proceed with its ambitious plans to expand its reach into Africa’s aviation sector.

RELATED:

About Author

Faith Nyasuguta

Leave a Reply

Your email address will not be published. Required fields are marked *