Tuesday, September 17, 2024

High Court stops controversial takeover of JKIA by Adani Airport Holdings

High Court stops controversial takeover of JKIA by Adani Airport Holdings

The High Court of Kenya has stopped the controversial takeover of the Jomo Kenyatta International Airport (JKIA) by Adani Airport Holdings.

This follows a court case that has been filed by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) and certified as urgent by the High Court.

In the case, the LSK and the KHRC argue that the JKIA is a profitable national asset that is strategic. They argue that it is therefore irrational and a violation of the principles of good governance, accountability, transparency, and prudent and responsible use of public money for it to be leased to a foreign entity for a period of 30 years.

Co-Op post

The LSK and the KHRC argue that Kenya can independently raise the estimated Sh. 238 billion on its own without needing to lease out the airport for the three decades. “The Adani proposal is unaffordable, threatens job losses, exposes the public, is proportionately to fiscal risk, and offers no value for money to the taxpayer,” said lawyer Dudley Ochiel in the application.

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

He further argued before the court that the application shall be rendered nugatory and moot if the Kenya Airports Authority (KAA) and the Adani Airport Holdings are not stopped from signing the agreement, and if Adani goes ahead and acquires the national airport.

NCBA

“The proposal would deprive the public of, and transfer to Adani, all the current revenues, receipts, expenditures and other financial transactions over the JKIA. Although the project is dubbed a Built Operate Transfer, KAA would be handing over an existing and operational airport to Adani,” the LSK and the KHRC told the court.

The court further heard that the takeover will entitle Adani to operate tax free for a period of ten years, import labour, and obtain free work visas, which will deprive Kenyan workers of their livelihood, contrary to Articles 26, 41, and 43 of the Constitution.

High Court judge John Chigiti ordered that the case be mentioned on October 8, on which date a judgement date shall be set.

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