Kenya will not be allowed to build or upgrade any airport that can compete with the Jomo Kenyatta International Airport for a period of 30 years. This is one of the demands that Adani Airport Holdings has made in a controversial JKIA takeover proposal. The demand will come into effect once Adani takes over the JKIA.
“No new competing facility will be constructed in proximity to JKIA by authority or government instrumentality during the concession… In the case of the development of any existing competing facility through private investment, the concessionaire will have the right of first refusal,” Adani’s JKIA takeover proposal was quoted in a published report by the Standard Media Group’s The Standard.
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In addition to this, Adani will also require the government to amend laws and change Kenya’s aviation policy to guarantee that the Indian firm has the sole responsibility of running the JKIA.
“Under these proposals, the 38 airports in Kenya will not be upgraded to compete globally, leaving them stagnant for the duration of Adani’s 30-year plan to operate JKIA,” the Standard report stated. “This condition [by Adani will] also prevent any private investor from establishing a new airport without Adani’s approval.”
The Indian firm has also declared that Kenya will bear the burden of losses alone regardless of cause, including where the takeover deal is abandoned midway. It further declares that an additional runway will not required until the end of the concession period in 2054.
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“The existing litigations in respect to the land at JKIA to be the responsibility of the Kenyan government… Government to remain fully responsible for any existing issues/disputes or arising pursuant to the award concession, with any of the above stakeholders holders (Kenyans included) in relation to JKIA,” Adani states in its proposal.
Upon JKIA takeover, Adani will have the sole and exclusive right to determine, invoice, collect, retain, and appropriate fees from users for all services in US dollars. The Indian firm adds that it may also repatriate any of its earnings to countries outside Kenya, subject to the payment of concession fees to the authority.
