Kenya court halts Adani’s airport deal amid criticism

The Adani Group had been in discussions with the government for a £1.41 billion investment in exchange for a 30-year lease of the airport.

• EasternEye
• 11 September, 2024

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By: EasternEye

KENYA’s High Court has halted the deal for Indian firm Adani to take over Nairobi’s Jomo Kenyatta International Airport (JKIA), following widespread criticism. The court’s decision was welcomed by those opposing the deal, calling it a victory for the Kenyan public.

The Adani Group had been in discussions with the government for a £1.41 billion investment in exchange for a 30-year lease of the airport. However, many critics argue the deal could lead to job losses for local workers and reduce future revenue for taxpayers.

The airport’s freight and passenger fees contribute more than five percent to Kenya’s GDP. The Law Society of Kenya and the Kenya Human Rights Commission challenged the deal in court on Monday, stating it violated principles of governance, accountability, and transparency, and could lead to the misuse of public funds.

The High Court approved a temporary delay in the deal, with a final decision still pending. Kenya’s government, however, defended the agreement, stating it was needed to modernise JKIA, which is one of Africa’s busiest airports. In 2022-23, the airport handled 8.8 million passengers and 380,000 tonnes of cargo but faces challenges such as power outages and maintenance issues.

Adani’s proposed upgrades include adding a second runway and refurbishing the passenger terminal, according to the Kenya Airport Authority.

Ochiel Dudley, representing the Law Society and Human Rights Commission, said the delay was a “win for the Kenyan people whose concerns have largely been ignored by a political class eager to push through a seemingly shady deal.”

Last month, the Kenya Aviation Workers Union threatened to strike over the deal, though the walkout has been postponed twice to allow time for negotiations.

(With inputs from AFP)