Passengers flying into and out of Kenya via the Jomo Kenyatta International Airport should expect to cough up more for air tickets once Indian firm Adani Airport Holdings takes over operations at the airport.
According to part of the takeover proposal by Adani that has been revealed in a report by the Nation Media Group’s Daily Nation, Adani has proposed to pay a concession fee of Sh. 6.4 billion a year to the government.
Adani says that this money will be raised from fees that the company will charge airport users. The higher costs of using the JKIA will be slapped on airlines, who are expected to then pass them onto passengers through costlier air ticket prices.
The controversial takeover bid is being pushed by President William Ruto’s government in defiance to widespread criticism by the public and in contrast to recommendations from aviation experts.
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For instance, the report noted that a feasibility study report that was carried out by the Spanish consultancy firm ALG in February 2024 recommended the use of competitive bidding to guarantee that Kenya got value for money in exchange for investment partnerships at the airport.
However, the government gave a deaf ear to this recommendation and took on the Adani proposal which was allegedly tabled by the firm in the first quarter of 2024.
It is however not clear why President Ruto’s administration appears to have shut the door on competitive bidding and instead opted to force the Adani deal through.
Once it becomes operational, the deal will see Adani run the JKIA for a period of 30 years. Over this duration of time, Adani has proposed to set up a new passenger terminal, and to refurbish existing passenger terminals.
The private proposal by Adani had been kept secret by the government through the Kenya Airports Authority (KAA). The KAA only admitted about it after it was leaked to the public.
In justifying the proposal, KAA claimed that the airport was built in 1978 and has aging infrastructure that is a threat to Kenya’s regional competitiveness. “KAA received an investment proposal under the Public Private Partnership Act 2021… [for] an investment in a new passenger terminal building, second runway, and refurbishment of the existing facilities at [the airport],” said KAA.