Saturday, September 7, 2024

Government explains JKIA deal with Indian company

By Gloria Rebecca.

Government explains JKIA deal with Indian company

On Wednesday, the government refuted claims that it intended to sell the Jomo Kenyatta International Airport (JKIA) to an Indian-based multinational conglomerate.

The Kenya Airports Authority (KAA) released a statement clarifying that the arrangement with the company was a public-private partnership aimed solely at the infrastructural development of the airport, not a sale.

The Authority noted that despite JKIA’s status as a key national asset, its outdated infrastructure jeopardized the country’s competitiveness in the region.

Co-Op post

“The attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding,” the Authority noted in a statement.

The Kenya Airports Authority revealed that the agreement with the company involves building a new passenger terminal, establishing a second runway, and refurbishing the current facilities at the airport.

The Authority also stated that the deal was finalized after the cabinet approved the JKIA Medium Term Investment Plan, which includes upgrades to the passenger terminal building, runway, taxiway, and apron.

NCBA

According to KAA, the company’s proposal will undergo technical, financial, and legal reviews to ensure it complies with the Public-Private Partnerships Act 2021.

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“I wish to assure our staff that no jobs are at risk,” said Henry Ogoye, KAA Managing Director.

“I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits,” he added

This clarification follows closely on the heels of a statement made by Prime Cabinet Secretary Musalia Mudavadi two days prior, where he also denied similar allegations and disclosed that the investors would be collaborating under a Public-Private Partnership (PPP) to build a terminal at the airport.

“JKIA is not on sale. This is a public asset. It is a strategic asset and if it was going to be sold, you can only do it after a full public process that Parliament endorses,” Mudavadi explained.

“We need a new terminal, there was a green terminal but it never took off, the contractual agreement had its challenges,” the CS added.

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