Adani Group Proposes Investment to Modernise Nairobi Airport

Kenya Airports Authority (KAA) announced on Wednesday that it has received an investment proposal from the Adani Group for upgrading Nairobi's Jomo Kenyatta International Airport (JKIA). The proposal, submitted by Adani Airport Holdings Ltd (AAHL), is part of a public-private partnership aimed at enhancing the airport's infrastructure.

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Investment Proposal Details

The proposal includes plans for a new passenger terminal building, a second runway, and refurbishment of existing facilities. Henry Ogoye, JKIA Managing Director and CEO, stated that this proposal follows the Kenyan government's approval of a medium-term investment plan for the airport's upgradation. "Kenya Airports Authority KAA received an investment proposal under the Public Private Partnerships Act 2021 from the Adani Airport Holdings Limited, a key airport operator, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA," Ogoye said in a statement posted on X.

Significance of the Project

Built in 1978, JKIA is considered a strategic national asset. However, its ageing infrastructure poses a threat to regional competitiveness. According to Ogoye, the necessary investment is substantial and cannot be met with current fiscal constraints without private funding. "Its ageing infrastructure is a threat to our regional competitiveness," he noted.

Review and Approval Process

The AAHL proposal will undergo technical, financial, and legal reviews as per the Public Private Partnerships Act 2021. The project agreement will also require stakeholder engagement and approvals from the National Treasury, Attorney General, and Cabinet. "AAHL's proposal will be subjected to technical, financial and legal reviews alongside requisite due processes in compliance with the Public Private Partnerships Act 2021," Ogoye said.

Assurances to Stakeholders

Ogoye assured staff that no jobs are at risk due to this project. He also reassured the airport business community and operators that the expanded facility would create additional business opportunities and benefits. "I wish to assure our staff that no jobs are at risk. I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits," he added.

Currently, AAHL manages seven airports in India and is developing Navi Mumbai airport. The Adani Group aims to expand its airport operations further through this project in Nairobi.

The proposed upgrades aim to enhance JKIA's capacity and efficiency, making it more competitive in the region. This development is expected to bring significant improvements to Nairobi's main international gateway.