During a session of the Senate Standing Committee on Roads, Transport, and Housing today, Senator Richard Onyonka’s review of his statement regarding the JKIA and Adani Airport Holdings limited raised significant concerns about the leasing of Jomo Kenyatta International Airport (JKIA) under a Build-Operate-Transfer (BOT) model to Adani Airport Holdings Limited.
Senator Onyonka requested a detailed report on the transaction, highlighting several critical issues that require urgent attention. He questioned whether JKIA had incurred any financial losses due to this deal and sought clarification on whether other options were considered.
He pointed out that a Chinese company, Greenfield, was initially involved in a similar project with the Kenya Airports Authority (KAA). However, their contract was abruptly terminated, leading to the state paying Ksh. 4.7 Billion in compensation. He questioned where the funds for this compensation originated and whether it was accounted for in the national budget.
Onyonka demanded transparency regarding the selection criteria, asking why Adani was favored over other bidders and what specific terms they proposed. He raised concerns about Adani’s request to employ non-Kenyans and to set their employment terms and conditions.
Senator Onyonka urged the committee to obtain detailed information from relevant entities, including the KAA and the Public-Private Partnership (PPP) Committee, to evaluate the viability of the PPP arrangement. Senators of the committee compared the Adani deal to the Standard Gauge Railway (SGR) project, where transferring control to the Kenyan government proved challenging.
The senator also highlighted conflicting statements from the KAA and the government regarding the deal, calling for clarity. An essential aspect of the senator’s inquiry is the current valuation of JKIA.
Onyonka stressed the need to determine the airport’s worth and the fees it collects to assess the fairness of any PPP deal. He also questioned whether the Adani proposal targets only JKIA or includes other airports in the country, emphasizing the lack of clear details. He insisted on confirming whether stakeholders at JKIA were consulted before finalizing the deal.
The senator proposed examining the 2019 Parliamentary report by the Committee of Transport, led by Hon. Pkosing, to ensure its recommendations were considered in the Adani agreement.
The committee chaired by Sen. Paul Thangwa, with Sen. Peris Tobiko as the Vice Chairperson, members Senators Chute Mohamed, John Kinyua, Enoch Wambua, and Edwin Sifuna seeks answers and clarity on this high-stakes transaction and recommended inviting Prime Cabinet Secretary Musalia Mudavadi, the KAA Managing Director, and the PPP Committee to provide comprehensive details about the Adani proposal in the next 14 days.
Senator Edwin Sifuna echoed Senator Onyonka’s concerns, criticizing the current PPP law for treating Parliamentary approvals as optional. He promised to push for amendments to make such approvals mandatory for all PPP projects, beyond just minerals and natural resources.
Senator Onyonka cited Article 125 of the Constitution, empowering the committee to summon any person to give evidence or provide information and enforce witness attendance and document production. Section 40(3) of Cap 430 which specifies the detailed information required in a privately-initiated proposal, which must be scrutinized thoroughly.
