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Adani Deal-What’s Really Happening Behind the Scenes?
Kenya’s Airport Sold to a Scandal-Riddled Foreign Company
Civic Scoop
October 23, 2024
Table of Contents
Kenya is in the middle of a storm of controversy over the proposed partnership between the government and India’s Adani Group to lease and manage Jomo Kenyatta International Airport (JKIA), the nation’s most important transportation hub.
The deal has ignited protests, legal discussions, and widespread public anger, with many Kenyans questioning why such a critical national asset is being handed over to a foreign company with a history of global scandals.
More concerning is how this deal, which involves one of Kenya’s most valuable resources, was pushed through with little to no public participation, leaving many Kenyans feeling blindsided.
Why is the government rushing to hand over control of the airport, and what are the true implications of this secretive deal?
What Exactly is the Deal made with Adani?
The Adani Group, a conglomerate based in India, has proposed a 30-year lease to operate JKIA, with plans to invest $1.85 billion in upgrades. In return, Adani will retain an 18% equity stake even after the lease expires, giving the company long-term control over airport operations.
While the government claims this is a “win-win” scenario for both parties, the lack of transparency has raised major red flags.
One of the most contentious aspects of this deal is the use of a Privately-Initiated Proposal (PIP) instead of a competitive bidding process. Adani’s proposal was submitted in March 2024, following a closed-door meeting between the Indian and Kenyan heads of state.
No public tender was issued, and the deal only came to light after it was leaked on social media by a whistleblower in July 2024.
The Organized Crime and Corruption Reporting Project (OCCRP) later confirmed that Adani’s proposal was approved for the development phase, which opened the door to further negotiations.
This lack of a public bidding process has left many Kenyans wondering: Was Adani the best choice for such a vital national asset? And why were other potential bidders, such as the Argentinian firm Corporación América Airports, ignored?
Why Was There No Transparency and Accountability?
One of the most significant issues surrounding the Adani deal is it’s secretive nature, combined with the Kenyan government’s failure to hold public consultations or invite alternative bids. As expected, there is widespread distrust.
For Kenya, JKIA is more than just an airport—it’s a vital artery for the country’s economy, supporting tourism, trade, and international connections.
Handing over control of this key asset to a foreign company—especially one with a controversial track record—has raised serious concerns about Kenya’s sovereignty and national interests.
The government has defended its decision by arguing that the PIP process allows it to consider more than just financial factors, but this explanation has done little to ease public concerns.
Why Choose this Scandal-Riddled Foreign Partner?
What makes the Adani deal even more controversial is the baggage that the company brings with it.
The Adani Group has been involved in a series of global scandals ranging from financial misconduct and environmental damage to accusations of corruption and disregard for labor rights. Critics argue that handing over control of such an important asset to a company with such a troubled history could expose Kenya to significant economic and reputational risks.
The fact that Adani’s proposal was not made public until it was leaked in July only deepens suspicions about why the Kenyan government is so eager to work with a company facing global scrutiny.
What Do Kenyans Think?
The response from Kenyans has been overwhelmingly negative. Civil society organizations, aviation workers, and even members of Parliament have condemned the deal, with some accusing the government of selling off a national treasure without considering the public’s views.
The Kenya Aviation Workers Union (KAWU) has voiced concerns about potential job losses and carried out a strike claiming Adani had to leave the country because there was no job security. Many workers fear that Adani’s management could lead to the displacement of Kenyan employees in favor of foreign labor.
On the legal front, the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) have filed petitions in the High Court, challenging the constitutionality of the deal.
They argue that the government bypassed due process, failed to hold public consultations, and did not engage in a competitive bidding process—violating the principles of transparency and accountability.
As of today, October 23rd 2024, the High Court has granted a temporary suspension of the deal while the legal challenges proceed.
Across social media, the deal has sparked a massive outcry, with many Kenyans calling for more transparency and demanding an explanation for why such an important decision was made behind closed doors.
The hashtag #OccupyJKIA has gained momentum, reflecting the public’s frustration with the government’s handling of the situation.
On July 28, 2024, during a town hall meeting in Mombasa, President Ruto said that "only a mad man" would sell such a strategic national asset, as a response to public fears surrounding the government's negotiations with Adani Group for a long-term lease of the airport. But this has only inflamed public anger, as many feel that the government is not addressing their legitimate concerns about transparency, accountability, and public participation.
The Future of the Adani Deal in Kenya: What Lies Ahead?
The recent hearing on October 8, 2024, regarding the proposed lease of Jomo Kenyatta International Airport (JKIA) to the Adani Group has resulted in the continuation of the temporary suspension of the deal.
The High Court of Kenya upheld its earlier decision to block the implementation of the lease, pending further judicial review.
The Key Outcomes from the Hearing:
Temporary Suspension Remains:
The court confirmed that the Adani lease deal will remain suspended. This decision grants additional time for a comprehensive judicial review and further deliberation on the case brought forward by the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK), who have raised concerns about the lack of transparency, the potential financial burden, and the impact on Kenyan workers.
Judicial Review Granted:
The High Court has formally granted leave for a judicial review, allowing for an in-depth examination of the lease's legality. The review will scrutinize issues such as the absence of public consultation and the financial and social risks associated with transferring control of a critical national asset to a foreign company like Adani.
Next Steps:
While the case remains in legal limbo, no definitive timeline has been provided for a final judgment. The court will continue hearing arguments in future sessions, but the deal remains on hold as the judicial process plays out.
What The Adani Deal Means for Kenya’s Future
As the case proceeds, the High Court's final ruling will be crucial in determining whether the deal will move forward, be renegotiated, or be scrapped entirely. In the meantime, public opposition, legal challenges, and calls for greater transparency continue to shape the future of the Adani Group’s ambitions in Kenya.
What Can You Do Today?
Kenyans have the right to demand transparency and accountability from their government.
The time to speak up is now. If you believe that Kenya’s national assets should not be subject to secretive deals with foreign corporations, join the call for public participation in shaping the future of JKIA.
Stay informed, get involved, and make your voice heard. The fate of Kenya’s gateway to the world is in the balance, and every Kenyan has a stake in the outcome!