JKIA Modernization: Chirchir Defends Foreign Investment Amid Public Outcry
The Kenyan government's proposal to engage a foreign investor for the modernization of Jomo Kenyatta International Airport (JKIA) has been vigorously defended by Transport Cabinet Secretary Davis Chirchir.
He attributes Kenya's inability to upgrade the facility to financial constraints. Chirchir emphasizes the urgent need for modernization to accommodate the increasing volume of flights and cargo while maintaining JKIA's regional prominence. The current facility's inadequacies were highlighted by recent roof leaks during the El Nino period, an incident Chirchir described as embarrassing for the country. He stresses the importance of a new airport capable of receiving up to four million visitors, comparable to other developing nations. According to the CS, Kenya must ensure that JKIA remains competitive and attractive to customers.
To address these challenges, the government has engaged India's Adani Group to redevelop the facility. This decision, however, has sparked protests among Kenyans and aviation workers, culminating in a significant work stoppage that disrupted key services. Chirchir clarifies that Adani's proposal is classified as a Privately Initiated Proposal (PIP) under the Public-Private Partnership (PPP) Act, which allows the government to collaborate with private investors on crucial infrastructure projects. The Transport Cabinet Secretary elaborates on the negotiation process, emphasizing the focus on critical parameters such as return on equity and debt-equity ratio. He explains that equity, being more expensive, necessitates careful consideration of its proportion in the overall financial structure.
JKIA's capacity has been significantly strained over the years. Initially designed to serve 2.5 million passengers annually, it now handles over 6.5 million. Aircraft movement has also increased substantially, reaching over 72,700 aircraft per year, with projections indicating it could exceed 195,000 by 2030. Despite the government's efforts to justify the modernization plan, opposition remains strong. The Wednesday strike by airport workers protesting the proposed handover to Adani Group led to significant disruptions, affecting hundreds of passengers and causing flight delays and cancellations across major airlines, including Kenya Airways.
The proposal by Adani Airport Holdings, a subsidiary of Adani Group, entails a 30-year management takeover of JKIA under the PPP model. The comprehensive plan includes constructing a new passenger terminal, refurbishing existing ones, building a second runway, and enhancing cargo handling facilities. Prime Cabinet Secretary Musalia Mudavadi has disclosed that the airport renovation would cost approximately Sh 260 billion. He assures the public that the process would adhere to legal requirements and emphasizes the necessity of public participation to ensure transparency and accountability.