Adani-JKIA Deal Hits Snag as CS Chirchir Acknowledges Gov’t Errors, No Agreement Finalized
The Kenyan government has found itself in the spotlight after Transport Cabinet Secretary Davis Chirchir admitted to a communication failure regarding the Ksh. 260 billion proposal by Indian conglomerate Adani Group for the expansion of Jomo Kenyatta International Airport (JKIA).
However, Chirchir was quick to emphasize that no formal agreement has been signed with the multinational company.
“Today and over the past few weeks we have attempted to communicate. There was a bit of lapse of communication in the way we have carried the privately initiated investment by Adani in this airport,” Chirchir revealed during a press briefing held at JKIA following a meeting aimed at resolving a strike by aviation workers.
The strike, led by the Kenya Aviation Workers Union (KAWU), saw operations at JKIA and other airports across the country come to a standstill for 24 hours, stranding hundreds of passengers. The aviation workers protested the proposed deal, raising concerns over transparency and potential job losses.
In response to these concerns, Chirchir explained that the government is adhering to the Public-Private Partnership (PPP) Act, which allows private investors to submit proposals. The government’s discussions with Adani have revolved around key financial parameters such as return on equity and debt-equity ratios.
Chirchir further noted that the ongoing court case would provide an opportunity for the government to disclose more details of the deal. “From the government position, we are also aware that we have been taken to court. This presents a good opportunity to present all the documents to the court in the form of public participation,” he said.
He reassured the public that transparency would be upheld. “All documents will be put out, and this will help the government continue public participation to ensure everybody gets what the government is trying to do to basically employ the PPP framework to open our infrastructure in roads, airports, and schools,” added Chirchir.
The resolution of the workers’ strike saw the government agree to share crucial documents related to the Adani proposal with KAWU. The union has been given ten working days to review the documents and raise any concerns.
In a joint statement read by COTU Secretary General Francis Atwoli, the parties involved, including KAWU, Kenya Airports Authority (KAA), and Kenya Airways, agreed that no final agreement would be signed without KAWU’s concurrence. “THAT the parties (Government/Kenya Airports Authority) shall not enter into final agreement or append their signatures without concurrence with Kenya Aviation Workers Union (KAWU),” the statement emphasized.
Adding to the conversation, Government Spokesperson Isaac Mwaura reiterated that the Adani proposal is still under review, with no agreement yet reached.
“No terms have been agreed upon, and all aspects are subject to negotiation,” Mwaura affirmed.
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Adani-JKIA Deal Hits Snag as CS Chirchir Acknowledges Gov’t Errors, No Agreement Finalized
