KENYA NEWS
26-07-2024 by Freddie del Curatolo
Last week, Kenyan Senator Richard Onyonka asked the Senate Committee on Roads and Transport about an alleged deal between the Kenya Airport Authority, the government authority that manages the country's civil airports, and the Indian company Adani Airport Holding, for the management of the Jomo Kenyatta International Airport for the next 30 years.
The news clearly rebounded in the vibrant and engulfing social world in which protests are fermenting, leading to the mobilisation of Kenya's Generation Z. It has been said that the state is starting to sell off pieces of the country in order to continue its dynamics of corruption, political lobbying and elites, without losing its privileges, to the detriment of the less affluent population.
This is not completely untrue news. In addition to the senator, the Daily Nation newspaper also reported that KAA sources confirmed meetings between their top leadership and Adani's.
It has been more than murmured, too, that the Indian company, which controls eight of its country's most important international airports, handling 25 per cent of India's passenger traffic and 33 per cent of its air cargo traffic, has several pending litigations and is not cited by the public as being too trustworthy.
But above all, as always, the current government is accused, in the wake of demands for clarification raised by Senator Onyonka, of having acted with the lights off, without informing anyone.
‘It has been reported that KAA has entered into an agreement with Adani, a private company, to ‘construct, operate and transfer’ the management of JKIA. The purpose is to pay a fixed concession fee, as will be agreed in the concession agreement,' Onyonka said.
The Kenya Airports Authority (KAA) actually disclosed the existence of an investment proposal with the Indian conglomerate, but rejected speculation about the sale of Jomo Kenyatta International Airport.
In a statement, KAA's acting CEO, Henry Ogoye, explained that the proposal will undergo technical, financial and legal reviews, as well as due process required by law.
Sources briefing the media, however, insist that there would already be an agreement for a 30-year management, and that the company will benefit from the return of 18% of the estimated capital.
What is of interest to airlines and travellers, is that Adani Airport Holding would have the right to set the fares to be imposed on airlines and all other airport taxes, as well as additional services and more.
But there is more, in the contract between the state and Adani, there would also be a free transfer of land adjacent to the airport area, which is publicly owned, to build not only an industrial zone, but also an urban area.
It is no coincidence that the company itself recently stated in its financial year presentation to investors that it is continuing its diversification of revenues: the aviation business, which concerns airlines and passengers; the non-aviation business, which is based on duty free, food and beverage and other facilities at the airport; and the urban development business, which concerns real estate development around airports. The problem is that in order to achieve the targets, tax and fee increases are planned.
These, for now, are suppositions and words, but Kenyan civic and trade organisations including Law Society of Kenya (LSK), the Kenya Human Rights Commission (KHRC), the Africa Centre for Open Governance (AFRICOG) and The Institute for Social Accountability (TISA) have given KAA fourteen days to fully answer their questions on the pre-agreement.
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Open heavens!
For us it has always been an exclamation used to indicate the occurrence of an extraordinary event