The government has denied claims that it had agreed to lease a parcel of land as well as the Jomo Kenyatta International Airport to Indian conglomerate Adani Holdings for 30 years.
Transport cabinet secretary Davis Chirchir told a Parliamentary committee on Friday that the proposal by Adani to refurbish JKIA was still going through scrutiny by the Kenya Aviation Authority and that no agreement had been signed yet.
The CS also added that the government had also refused to grant a request by Adani to acquire 30 acres of land near JKIA for real estate and commercial development.
While appearing before the Senate Roads and Transport Committee Chirchir said Adani had in its proposal asked for 30 acres of land to build an ‘airport city’ or City Side Development, a request the government declined.
The Indian conglomerate had argued that the ‘airport city’ would consist of state-of-the-art recreational facilities and would help enhance JKIA’s identity as well as provide services for Kenyans at large.
“The government is not offering any free land to Adani Airport Holdings in the proposal. Adani, in its proposal, included a request for 30 acres of land of JKIA for real estate and commercial development, what we’re calling the city side,” the CS said.
Chirchir told the Senator Karungo Thangwa-led committee that, upon review, the government excluded the request, saying that such a matter would need to have the approval of the Head of Public Service as stipulated by law.
“This request has been excluded in the pending concession agreement but will be handled separately under the KAA policy on concession and leases like any other commercial operation including approval by the Head of Public Service which is the current policy on leasing out government property,” he said.
Chirchir also said that the Adani was yet to reach a deal with the government as the proposal it gave on JKIA was still under review by KAA.
This was in response to questions by the senators asking the CS to reveal the status of the agreement and whether a concession agreement exists between Adani and the Kenya Airports Authority (KAA).
Chirchir, however, confirmed that KAA had approved an initial head of terms agreement that summarised key negotiation items before all stakeholders engage and agree on a final document.
The Committee also questioned the tendering process and why the government settled for Adani for the leasing deal.
Chirchir argued that the Public Private Partnership (PPP) agreement allows a private investor to provide a proposal of their intentions which goes under review before the government agrees to the terms.
“The tendering process is not in the form of procurement Act that we employ everyday where we can do a limited or competitive because it’s an area where you allow private investors to approach you and say they want to build an airport, road, and this is where you do the due diligence,” the CS noted.
The government has been on the receiving end over the Adani proposal to take over operations at JKIA on a 30-year leasing agreement, a deal that many argue has been shrouded by secrecy.
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