KEY POINTS
- Kenyan court temporarily blocks Adani’s 30-year lease of JKIA.
- Critics fear job losses, fiscal risks, and a lack of taxpayer value.
- The government defends the need for upgrades but denies plans to sell the airport.
The high court in Kenya has recently suspended a deal that was supposed to enable the Indian company Adani Group to take over the management of JKIA for three decades. In return, the Adani Group has pledged to contribute $1. 85 billion to enhance the airport in Nairobi. Nonetheless, the proposed deal has raised growing concerns, hence facing legal opposition from groups such as the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC).
Kenyan Court Temporarily Blocks Adani Airport Lease Proposal
The urge to block the deal brings relief to many Kenyans who feared the proposal would result in job losses, compromise on sovereignty, and poor value for our money. Both the LSK and KHRC agreed with the notion that the Kenyan government could secure the required funding without necessarily having to seek assistance from such corporations as Adani.
Concerns Raised on the Lease from the Public
Jomo Kenyatta International Airport is Kenya’s largest airport and acts as the main commercial hub for East Africa. As soon as the information about the possible leasing of the plant was made known, the workers of the factory and other inhabitants of the city expressed their grave concern. The Kenya Aviation Workers Union went as far as threatening to go on strike due to the intended partnership, arguing that it would lead to massive job cuts and might bring in foreign workers instead of locals.
Critics—be it legal or human rights advocates—are shocked at the proposed lease, fearing that there are safer methods by which the government can source the funding needed to implement these much-needed improvements. ”This deal is detrimental to our national interest as well as the welfare of many,” opined LSK President, Faith Odhiambo.
After filing a petition by the LSK and KHRC, the court allowed a judicial review of the proposal, which effectively halted any further advancement toward accepting Adani’s offer soon. This helps give time to argue in front of the court until the case is concluded and action to implement the lease is given.
The Kenyan Government stands firm on its position.
According to Reuters, Kenya’s government has defended that the airport indeed requires an overhaul. The government insisted that JKIA is already stretched in terms of capacity and would need huge investments to meet new needs. However it has been strongly stated that there is no decision yet about letting in the Adani Group proposal as they again want to clarify that the airport is not for sale.
The government’s assurances have done little to calm public unease, especially as questions about transparency and the deal’s long-term consequences remain unanswered. Many fear that leasing one of Kenya’s most important assets to a foreign company for 30 years could have negative economic and social impacts.
