The Government of Kenya has issued a comprehensive defense of its decision to consider a proposal from India’s Adani Airport Holdings for the expansion of Jomo Kenyatta International Airport (JKIA) in Nairobi, following a wave of protests by airport workers that caused significant disruption.
The move comes after unrest at Kenya’s busiest airport, sparked by concerns over potential job losses and the privatization of the facility. The protests resulted in flight delays, disrupted operations, and left hundreds of passengers stranded. Responding to the outcry, government spokesperson Isaac Mwaura clarified the rationale behind the proposed partnership, emphasizing that no agreement has yet been signed and that the airport remains a strategic national asset not up for sale.
“The Adani proposal is still under consideration, with no terms agreed upon. JKIA is a strategic national asset and is not for sale,” Mwaura stated in a press release on Monday. “The Government sees the Public-Private Partnership (PPP) model as the most viable financing option for critical infrastructure upgrades.”
Urgent Need for Expansion
According to the government, JKIA is currently operating beyond its capacity. Originally designed to handle 7.5 million passengers annually, it now manages approximately 8.6 million, causing significant operational strain. Projections indicate that passenger numbers could soar to 32 million by 2054, alongside a near-tripling of cargo traffic from 367,000 tons in 2023 to almost 1 million tons by the same year.
“The airport’s infrastructure has surpassed its capacity and cannot support projected growth,” Mwaura added. “Incidents such as leaking roofs and power outages, inadequate aircraft parking bays, outdated passenger terminals, and long waiting times have underscored the urgent need for expansion.”
The proposed expansion, estimated to cost $2 billion (KES 260 billion), would involve the development of a new passenger terminal, a second runway, and the refurbishment of existing facilities. The project aims to position JKIA as a more competitive regional hub, comparable to recently upgraded airports in Rwanda, Tanzania, and Ethiopia.
Adani’s Proposal Under Scrutiny
Adani Airport Holdings submitted a Privately Initiated Proposal (PIP) in March 2024 under Kenya’s PPP Act. The proposal is undergoing what Mwaura described as “thorough due process,” including stakeholder engagement, National Treasury approval, and Cabinet clearance, as mandated by the PPP Act of 2021.
Key aspects of the Adani proposal include a commitment to infrastructure investment, economic contributions such as taxes and concession fees, and the social impact of creating jobs and securing existing employment for Kenyans. The plan also emphasizes enhancing JKIA’s competitiveness through regulated passenger charges to ensure affordability.
“This expansion is essential for Kenya’s future growth and global competitiveness,” Mwaura noted, highlighting the airport’s critical role in the country’s economic development, tourism, and trade. The proposal includes payments of concession fees to the Kenya Airports Authority (KAA), contributions to the national treasury through taxes, and job creation.
Workers’ Concerns and Government Reassurances
Despite the government’s assurances, the proposed partnership with Adani has ignited fears among JKIA’s workforce of potential job losses and privatization, prompting the protests. Union leaders representing the airport workers argue that the proposal could lead to wage cuts and layoffs, while others have raised concerns about transparency and the fairness of the bidding process.
Mwaura, however, sought to reassure the public and stakeholders that the government remains committed to protecting jobs and fostering a favorable business environment. He stressed that the Adani proposal is aimed at boosting employment opportunities and economic growth, rather than cutting jobs.
“Ensuring job security and creating employment opportunities for Kenyans are key components of the proposed partnership,” he affirmed.
Broader Context of Economic Strategy
The government’s decision to seek a private partner for the JKIA expansion reflects broader economic challenges, including fiscal constraints that limit its ability to fund large-scale infrastructure projects independently. The choice of a PPP model, Mwaura argued, aligns with Kenya’s National Development Plan and its goal of reinforcing Nairobi’s status as a regional air transport, trade, and financial hub.
“As a key pillar of Kenya’s regional commercial and logistics hub status, JKIA plays a vital role in the country’s economic development and connectivity,” Mwaura explained. “Expanding the airport is crucial for sustaining economic growth, tourism, and trade.”
Next Steps
While the proposal from Adani is still under review, Mwaura highlighted the importance of public engagement and transparency throughout the decision-making process. He reiterated that the government is committed to a fair and open evaluation of the Adani bid and other potential partners.
