Adani Deal Faces Uncertainty After Court Ruling

The High Court has suspended the planned leasing of Jomo Kenyatta International Airport (JKIA) to the Adani Group due to a case filed by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) that challenged the decision to lease the airport.

The two organisations argued that JKIA is a profitable national asset and that the deal violates the principles of good governance, accountability, transparency, and the prudent and reasonable use of public money.

“Leasing the strategic and profitable JKIA to a private entity is irrational and contravenes the constitutional principles of good governance, accountability, transparency, and prudent and responsible use of public money,” they said in their filings.

Justice John Chigiti ruled that no person or entity can implement the deal until the case filed in court is heard and determined on October 8.

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The judge declared that the LSK and KHRC have three days to file their submissions to the court, and thereafter, the Kenya Airports Authority (KAA) and any other interested parties have five days to file responses.

“The leave so granted shall operate as a stay in line with prayer 3. The applicant shall file and serve the substantive application within three days. The respondents and the interested parties shall thereafter file and serve their respective responses, if any, within five days of service,” the judge declared in a statement.

Adani Enterprise Limited submitted a proposal on Friday, March 1, to take over the running and management of JKIA for 30 years. The government secretly accepted the proposal that grants the Indian multinational 100 percent control of Kenya’s largest airport. 

Adani had pledged a Ksh238 billion investment to upgrade and expand JKIA with plans to construct a second runway and build a new passenger terminal.

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The privatisation deal ignited widespread public outrage over the secrecy of the deal by the government.

This led to KAA workers protesting, rejecting the move to lease JKIA to the Adani Group - arguing it threatened their jobs in the leadership changet. However, the government remained determined to push the deal forward.

KHRC and LSK had sent letters to JKIA in July and August seeking details on the contract, but no information was shared about the deal.

If the deal falls through, Adani will retain an 18% equity stake in JKIA’s aeronautical business indefinitely after the 30-year lease period.

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