Saturday, December 21, 2024

Hersi: Adani’s JKIA deal is bad. Get other investors, build new airport in Konza

Hersi: Adani's JKIA deal is bad. Get other investors, build new airport in Konza

The controversial takeover of the Jomo Kenyatta International Airport (JKIA) by Indian firm Adani continues to generate widespread criticism. Aviation, economic and tourism experts are cautioning that Adani’s JKIA deal is bad. The deal is not returning any real value for money to Kenya.

In its place, different Kenyans have come up with various alternatives that can give Kenya the competitive edge to against regional aviation power house Ethiopia and emerging aviation enthusiasts Rwanda.

One of these proposals is for the government to abandon the widely condemned leasing of the JKIA for 30 years by Adani and instead competitively attract global investors for investment in a brand new airport at better grounds such as the strategic Konza City.

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For instance, according to respected hotelier and tourism expert Mohammed Hersi, the Adani deal is not visionary and the proposals can actually be realized without trading off what the Indian company is demanding in return.

Here is what Mr. Hersi says:

“Adani is not going to help us deliver Vision 2030. As we discuss any PPP for JKIA, especially the Adani deal, please note JKIA contributes 90 per cent to KAA revenues and, by extension, profit.

NCBA

According to the Adani agreement, Kenya cannot build or expand another airport for 30 years. It means Mombasa, Kisumu, Eldoret, and any future resort city under Vision 2030 can go dry in the sun.

I am a strong supporter of strategic investors, but it’s important to note that serious investors have strict standards regarding corporate governance, and our leadership has a strong dislike for good governance and transparency.

This is not the first one facing JKIA; loss-making KQ made a hostile bid to takeover JKIA, of course with the blessing of the previous government. They were stopped in their tracks since the chaps behind the deal were salivating at the high-value real estate held by JKIA.

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The Adani deal, without any doubt, is a bad deal. This implies that Mombasa International Airport, which we are striving to establish as a significant secondary hub, will be neglected and rely on state rescue plans, just like Kisumu and Eldoret. Way forward?

️If Adani or any other strategic investor would like to invest, let them be given land at Konza, which is our techno city, and they build a state-of-the art airport with their own funds. Kenya will be happy to retire JKIA to serve local and regional flights. Konza terrain and elevation are perfect and ideal; I am sure aviation experts will be delighted with that option. The implementation of the dual carriageway and rail connection significantly enhances Konza’s potential as a future city.

JKIA Adani raw deal pales against Rwanda, Ethiopia new airport constructions

Istanbul achieved this by retiring Atartuk Airport, which could accommodate 70 million passengers annually, and constructing a brand-new Istanbul International Airport, capable of accommodating 200 million passengers annually.

Right next door, Kigali is going to retire the current Kigali International Airport and move to Bugesera, far from Kigali.

Ethiopia have also made a bold move to retire Bole and they are moving south of Addis. They have decided to set up what would become the largest airport in Africa to handle 100 million passengers a year.

Turkey, Rwanda and Ethiopia did not opt to panel-beat a tired airport; if the Atartuk Airport was brought to Africa, it would still be the best in Africa just to show you how we lack vision as Africans, not because we lack resources. Istanbul did not wait they moved ahead.

Rwanda is not waiting; they see the future. They are visionary,  Kibaki, with Vision 2030, and Konza was way ahead of everyone else. This is what we desire, not the type of deal that companies like Adani are offering us. Are we that desperate or so ill-informed to fall into such a deal?

Kenyans undoubtedly deserve better; leadership is a privilege, and it is your responsibility to guide your people effectively and leave a lasting legacy. JKIA deal with Adani or any other party is not visionary at all. If anything, I am now proposing that we focus on a brand new airport at Konza, which will also open up Machakos, Kajiado, and Makueni counties in a big way.

If we were not losing money through corruption, we could build our own brand new airport at Konza without purported help from anyone. Well, I still choose to remain an optimist that Adani will not get anywhere in JKIA, and if we must develop JKIA, then let it be competitive.”

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