The High Court has temporarily suspended the proposed lease of Jomo Kenyatta International Airport (JKIA) to Indian conglomerate Adani Enterprises.
In an urgent case, the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) challenged the plans that would allow Adani to operate JKIA for 30 years.
The two organizations argue that JKIA is a strategic and profitable national asset, asserting that the deal is irrational and violates principles of good governance, accountability, transparency, and the prudent use of public funds.
Under the deal, Adani would upgrade the airport by constructing a second runway and a new passenger terminal through a 30-year build-operate-transfer (BOT) contract.
However, KHRC and LSK contend that Kenya can independently raise the estimated $1.85 billion, or Kes.238 billion, needed to expand JKIA without leasing the airport.
“Thus, the Adani proposal is unaffordable, threatens job losses, exposes the public to disproportionate fiscal risk, and offers no value for money to the taxpayer,” lawyer Dudley Ochiel stated in the application.
Ochiel emphasized that the application would become moot and ineffective if the Kenya Airports Authority (KAA) and Adani were not prevented from signing the agreement and Adani proceeded to acquire JKIA.
The two organizations noted that they had written to JKIA, seeking information under Article 35(1) and (3) of the Constitution of Kenya and Section 4 of the Access to Information Act, but received no response. LSK argued that Kenya would surrender the operational and profitable JKIA to Adani for 30 years in exchange for Kes.238 billion.
“Thus, the proposal would deprive the public of and transfer to Adani all current revenues, receipts, expenditures, and other financial transactions over JKIA. Although the project is labeled as a Build Operate Transfer, KAA would be handing over an existing and operational airport to Adani,” Ochiel said.
He added that at the end of the 30 years, Adani would retain an 18 percent equity stake in the aeronautical business at JKIA indefinitely.
“Thus, after 30 years, Adani would be entitled to an 18 percent concession fee starting at Kes.6 billion, increasing by 10 percent every five years forever. This proposal violates Article 201(c), which mandates that the burden and benefits of using resources and public borrowing be shared equitably between present and future generations,” he stated.
Ochiel submitted that under the deal, Adani would acquire nearly 30 acres of unencumbered land next to JKIA for airport property investment and development. Additionally, the proposal allows Adani to operate tax-free for ten years, import labor, and obtain free work visas, thereby depriving Kenyan workers of their livelihoods. This situation contradicts Articles 26, 41, and 43 of the Constitution.
High Court Judge John Chigiti certified the case as urgent and granted a temporary order suspending the deal pending the determination of the case.
The judge scheduled the case to be mentioned on October 8 to set a judgment date.
