Why Kenyan Court halted $1.85 billion Adani – JKIA’s “cheeky’ deal

By Steve Umidha

Kenya’s High Court issuance of an order preventing any action or implementation of the proposed deal by Adani to buy the Jomo Kenyatta International Airport (JKIA) was met with relief.

This is because the move, according to a subpoena by the Law Society of Kenya (LSK), which contended that such a controversial move would render many airport workers jobless, disproportionated public fiscal risk, and added little value to taxpayers.

Faith Odhiambo, the president of the Law Society of Kenya, in her application further argued that the $1.85 billion deal between the government and Adani Airport was “unaffordable.”

“Leasing the strategic and profitable JKIA to a private entity is irrational” and contravenes the constitutional principles of “good governance, accountability, transparency, and prudent and responsible use of public money,” they said in their filings,” reads a filing from the lobbyist.

The Law Society of Kenya and the Kenya Human Rights Commission, a non-governmental organization, are contesting the government’s decision to lease Nairobi’s Jomo Kenyatta International Airport to Adani Airport Holdings.

LSK says the deal violates the constitution and are challenging the government’s authority to proceed with the lease.

According to their filings, LSK says that Kenya can raise funds independently to expand Jomo Kenyatta International Airport without committing to a 30-year lease.

Under the terms of the build-operate agreement, Indian billionaire Gautam Adani’s company would be responsible for upgrading Jomo Kenyatta International Airport, East Africa’s busiest aviation hub. The deal includes constructing a second runway and a new passenger terminal.

The Kenyan government has defended the arrangement, arguing that the airport is currently operating beyond its capacity and urgently requires upgrades.

In July, Kenya Airports Authority’s acting Managing Director, Henry Ogoye, emphasized that the proposal would undergo rigorous technical, financial, and legal reviews to ensure it aligns with the nation’s public-private partnership laws.

Adani Airport, is controlled by Asia’s second-richest person, Gautam Adani, and manages a portfolio of eight airports in India, dominating over 50% of the top 10 domestic routes. The company’s airports handle 23% of Indian air traffic and serve 20% of the total passenger base.