Kenya sued over tycoon Adani JKIA deal
Motorists pass through security checks at the entrance of the Jomo Kenyatta International Airport in Nairobi.
What you need to know:
- Petitioner wants deal declared unconstitutional on grounds that the process was rushed and the usual processes bypassed.
The Kenya Airports Authority (KAA) and the government have been sued over plans for a Sh246 billion deal given to an Indian firm to construct a new passenger terminal and refurbis existing facilities at the Jomo Kenyatta International Airport (JKIA).
Mr Issack Lango Guyo wants the $1.85 billion deal awarded to Adani Airport Holdings Limited declared unconstitutional on grounds that the process was rushed and the usual processes bypassed.
In the deal, the Gautam Adani-owned Indian firm would upgrade the airport, including the construction of a second runway and a new passenger terminal, under a 30-year-build-operate-transfer (BOT) contract.
Mr Guyo said he is apprehensive that the proposals are being expedited without adherence to established procedures of Public private Partnerships (PPPs), in its very nature are intricate transactions requiring substantial time for compressive consultation, thorough evaluation and meticulous negotiations.
“That the court orders the immediate cessation and nullification of all proceedings, agreement and activities related to the said PIP by Adani Airport Holdings Limited to prevent any further infringement of constitutional and statutory proceedings,” Mr Guyo said.
High Court judge Lawrence Mugambi on Wednesday directed him to serve KAA and other respondents within 14 days. The case will be mentioned on September 24 for directions.
Adani Airport Holdings Limited submitted a privately initiative proposal (PIP) to the KAA on March 1, 2024 on BOT arrangement. He pointed out that the proposal entails a 30-year-lease term under which Adani Airport Holdings, a subsidiary of Adani Group, would assume responsibility for the development and operation of JKIA.
According to Mr Guyo, the deal could potentially confer significant control of airport operations to the Adani Group, including the authority to determine user fees, which could have consequential impact on airlines and travellers.
He has named KAA, Treasury, Public Private Partnerships Unit (PPPU) and the Ministry of Transport as respondents in the case.
He also said concerns have also been raised regarding Adani Group over allegations and controversies it faces including stock manipulation, improper accounting practices, misrepresenting financial statement and others.
“The petitioner has also watched with great concern the developments and the conduct of the respondents ever since the transaction leaked into the public domain. The respondents have largely remained silent, allowing speculation to build dangerously with the public domain,” he added.
