Has JKIA been sold? #OccupyJKIA

Nairobi, Kenya – Prime Cabinet Secretary Musalia Mudavadi has addressed concerns regarding speculation that the government is considering selling Jomo Kenyatta International Airport (JKIA), adding that “there are no plans for such a transaction”.

Mudavadi, speaking before the Budget and Appropriations Committee led by Ndindi Nyoro (Kiharu), defended the supplementary budget one estimates for the 2024/2025 financial year, emphasizing that any decision of this nature would require parliamentary approval.

Recent reports had suggested that the government was involved in a private arrangement to lease JKIA to the Indian firm Adani Airport Holdings Limited, sparking Tuesday’s protests dubbed #OccupyJKIA. However, Mudavadi dispelled these rumors.

“Let me make it clear that Jomo Kenyatta International Airport is not for sale. It is a public and strategic asset. Any sale would require a comprehensive public process and Parliament’s endorsement,” he stated.

The Prime Cabinet Secretary also highlighted the need for the Kenya Airports Authority (KAA) to focus on upgrading JKIA to enhance passenger experiences and boost traffic.

As part of the government’s Medium-Term Plan, unveiled by President William Ruto earlier this year, there are intentions to construct a new terminal at the airport to meet these goals.

JKIA has faced long-standing criticism over infrastructure issues such as leaking roofs, poor drainage, and insufficient shelter, problems that were particularly evident during the heavy rains of early March.

“Claims that the airport has been sold are unfounded. What we must focus on is modernizing the airport, which requires resources for constructing new terminals. Moving forward, KAA must carefully assess its investment strategies,” Mudavadi said.

This discussion arises as Kisii Senator Richard Onyonka requested detailed information about a contract between the Kenya Airports Authority and their transaction advisor, the Spanish firm ALG.

Onyonka questioned the company’s ownership and the processes that led to the awarding of a contract to develop Kenya’s Air Transport Policy, including a subsequent payment of Sh160 million to ALG.

“In the statement, the committee should clarify the rationale behind the government’s plan to allocate free land to the company for city-side development on public property, which might cause land disputes in areas around JKIA,” reads part of Onyonka’s statement.

The Senator alleged that KAA had agreed with ADANI Commercial, a private entity, for a ‘Build, Operate, and Transfer’ model to lease JKIA. This model involves paying a fixed concession fee as outlined in the agreement.

Onyonka noted that under this model, spanning 30 years, any assets developed by the company would be handed over to KAA upon the agreement’s completion.