The government has announced that it received a Privately Initiated Proposal (PIP) from an Indian company in March 2024 to upgrade the Jomo Kenyatta International Airport (JKIA).
In a statement dated July 29 by Prime Cabinet Secretary Musalia Mudavadi, the proposal by Adani Airport Holdings was currently undergoing a review.
Mudavadi noted that no terms had been agreed yet with the firm, maintaining that all terms and conditions of the deal were subject to negotiation in accordance with the Public Private Partnership (PPP) Act.
“The proposal is currently undergoing the requisite due process, reviews, and negotiations in compliance with the PPP Act whose control checks will cover; value for money assessment, stakeholder engagement, National Treasury approval, clearance by the Attorney General, Cabinet approval and, where required, approval by Parliament before any agreement can be signed,” Mudavadi stated.
He added, “For the avoidance of any doubt, all terms and conditions of the proposed arrangement are subject to negotiation in accordance with the provisions of the PPP Act and no terms have been agreed upon as yet. As and when the terms are agreed, there shall be appropriate safeguards to ensure that Kenya’s national interest prevails and that the private party is held fully accountable for the performance of its obligations.”
At the same time, the Prime CS reaffirmed that the proposed upgrade of JKIA will be conducted in strict adherence with the constitution and specifically in accordance with legal frameworks established under the PPP Act.
He added that the project would be subject to rigorous review and scrutiny and that the government was committed to transparency and accountability throughout the process.
According to the Prime CS, the expansion of JKIA was estimated to cost Ksh260 billion, adding that the government was constrained to fund the project due to the current tight financial situation of the country.
Mudavadi’s remarks after President William Ruto on Sunday, July 28, affirmed that the JKIA was not being sold.
“I have seen many people saying William Ruto wants to sell the airport. Am I a madman? How do you sell a strategic national asset? You have to be insane. The airport is a strategic national asset. We want to work under the PPP program to make the airport better,” the president said during a town hall in Mombasa.
