The public space has been rife with discussions on controversies surrounding the Jomo Kenyatta International Airport Concession. In a statement, the Kenya Airports Authority CEO, Henry Ogoye seeks to clear the air of controversies and address the thorny issue that was the cause of the #OccupyJKIA social media movement and the eventual protest.
A strategic national asset built in 1978, KAA claims its aging infrastructure threatens regional competitiveness. Moreover, the authority says according to the cabinet-approved JKIA Medium Term Investment Plan, the requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding.
The statement read that the authority received an investment proposal under the Public Private Partnerships Act 2021 from Adani Airport Holdings Limited to invest in a new passenger terminal building, second runway, and refurbishment of existing facilities at JKIA.
Adani Airport Holdings Limited, a subsidiary of the Adani Group of companies has significant infrastructure investment in India. The Adani Group has taken over the management of several major airports in India, including those in Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. The group also focuses on seaports, power generation and transmission, Natural resources and mining, Technology, and real estate development.
However, the group is no stranger to controversy, In January 2023, Hindenburg Research, a U.S.-based investment research firm, released a report accusing the Adani Group of stock manipulation and accounting fraud. The report claimed that the group had engaged in a “brazen stock manipulation and accounting fraud scheme” over decades.
The release of this report led to a significant sell-off in Adani Group stocks, wiping out billions of dollars in market value. The group’s flagship company, Adani Enterprises, saw its stock price plummet, along with other listed entities like Adani Ports and SEZ, Adani Green Energy, and Adani Total Gas. Moreover, the Adani Group’s high levels of debt have been a recurring concern for investors and the controversies and allegations surrounding the Adani Group have contributed to increased volatility in its stock prices.
The proposal by Adani Airports Holdings Limited will be subjected to technical, financial, and legal reviews in compliance with Public-Private Partnerships Act 2021. In his statement, Mr. Ogoye seeks to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits. However, it remains to be seen whether this will appease the resenting sentiments around Adani’s business practices and the controversy of the details leading up to the initiation of the proposal.
