Following Wednesday’s staff strike involving unionisable staff from the Kenya Airports Authority (KAA) and Kenya Airways (KQ) which was called off the Kenya Aviation Workers Union (KAWU) having disrupted hundreds of flights the Kenya government has come out to quell public anger in what Kenyans have called the auctioning of a strategic public asset. While signing the return to work formula signed the workers union said the government has provided the requested documents for evaluation within 10 days where any going concern shall be flagged and be pointed out. The government has also been prohibited from entering into any final agreement without the final consent of the workers union
In a statement from the office of the government spokesperson Dr Isaac Mwaura the need to seek a strategic investor arises from the strain on the current hub infrastructure due to an increase in passenger and cargo traffic beyond the design capacity.
According to Dr Mwaura Jomo Kenyatta International Airport (JKIA) is estimated to handle 32 million passengers and nearly 1 million tons of cargo in the next 30 years from the 8.6 million passengers and 367,000 tons of cargo handled last year. The airport he laments has already exceeded its design capacity of 7.5 million passengers annually.
“The airport faces infrastructure challenges such as leaking roofs, power outages, outdated systems, and inadequate amenities. As a key commercial hub for Kenya, expanding JKIA is vital for economic growth, trade, and tourism.”
He further laments that the government is facing fiscal constraints, and as such, it has adopted a Public-Private Partnership (PPP) model to finance the $2 billion expansion. He adds that in March 2024, Kenya Airports Authority received a privately initiated proposal from Adani Airport Holdings of India under the PPP Act focusing on infrastructure investment, regional competitiveness, economic contributions, and job creation. He states that PPP is the way to go if JKIA has to remain competitive and to rival regional airports in Ethiopia, Rwanda and Tanzania.
“The expansion is essential to maintaining Kenya’s regional competitiveness and global connectivity.”
He has been quick to state that no agreement has been signed yet emphasizing that JKIA remains a strategic national asset, not for sale.
In the proposal Adani plans to invest $2 billion to develop a new passenger terminal, a second runway and refurbishment of existing facilities. Adani will pay a concession fee to KAA, tax payment and enhance economic growth through job creation and local service provider agreements.