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Senator Questions KAA on Reported Secret Lease Deal with Indian Firm for JKIA

July 19, 2024

Senator Richard Onyonka has called on Kenya Airports Authority (KAA) to clarify its involvement in a controversial agreement with Adani Airport Holdings Limited, an Indian firm, to lease Jomo Kenyatta International Airport (JKIA).

Petitioning the Senate Committee on Roads and Transport, Onyonka sought a statement regarding the purported deal with Adani, which would see JKIA operated under a build, operate, and transfer model.

In his communication to Senate Speaker Amason Kingi, Onyonka outlined, “Reports indicate that KAA entered into an agreement with Adani Commercial, a private entity, to ‘build, operate, and transfer’ the lease of JKIA. The purpose is to pay a fixed concession fee as will be agreed in the concession agreement.”

He continued, “The arrangement spans 30 years, during which assets developed by Adani through capital investments will transfer to KAA at the end of the concession period. The value of these assets, agreed upon by both parties, will include an 18 percent equity stake for Adani.”

Onyonka’s inquiry underscores his call for transparency and accountability in managing national aviation assets, particularly in the context of the Adani deal.

The senator also raised concerns about Adani’s authority under the agreement to set charges for airlines and other users at JKIA, calling for detailed disclosure of the contract terms and ownership of Adani Commercial.

Additionally, Onyonka urged the Senate committee to provide clarity on the contract involving transaction advisor ALG, including the selection process leading to the award of the contract for developing Kenya’s Air Transport Policy. He highlighted a payment of Kes.160 million to ALG and called for transparency in these dealings.

Furthermore, Onyonka demanded access to documents from a KAA board meeting held on July 15, 2024, including notices, agendas, minutes, and resolutions. He expressed concern over government plans to allocate free land for city-side development near JKIA, emphasizing potential implications for surrounding land disputes.

“Furnish the Senate with the notice of meeting, agenda, minutes, and resolution of a board meeting convened by KAA on July 15, 2024, and state the reasons for government plans to avail free land to the company to build a city side development on public land which may lead to land issues in areas surrounding JKIA,” Onyonka demanded.



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