Kenya's $2 billion airport project raises transparency concerns: summary

What we know

• Kenya is planning a new $2 billion (Ksh264 billion) international airport to relieve pressure on the ageing Jomo Kenyatta International Airport (JKIA), which has been plagued by capacity issues and infrastructure problems. 
• In recent times, heavy rains exposed the poor state of JKIA, with terminal 1C earning the nickname "terminal 1 sea" due to leaking roofs.
• The proposal by Indian conglomerate Adani Group to expand and operate Kenya’s largest airport under a 30-year concession has sparked significant opposition. 
• Upon completion, Adani Group would receive an 18% equity stake in the airport after the concession period.
• Adani Group has faced multiple government investigations in Australia and the United States over alleged fraud and corruption, raising further concerns about the transparency of the deal.

 What they said

In its proposal to the Kenyan government, Adani Group argued that a Public-Private Partnership (PIP) offers distinct advantages over competitive bidding. “PIP allows the government to secure terms beyond purely financial considerations, ensuring the welfare of citizens,” Adani wrote. They suggested that competitive bidding risks making the deal purely transactional, without room for mutual considerations, whereas a PIP creates a win-win scenario for the people of Kenya, the Government of Kenya (GOK), and private investors. Prime Cabinet Secretary Musalia Mudavadi had emphasized that “JKIA is not on sale. It is a strategic asset and if it was going to be sold, it can only be done after a full public process that Parliament endorses.”