When it comes to the Adani proposal for Jomo Kenyatta International Airport (JKIA), there’s more than meets the eye. This isn’t just a routine partnership; it’s a high-stakes game where Adani Airport Holdings Ltd holds most of the cards, and Kenya, well, may be left holding the bill.
First off, let’s talk about the fine print. Under the deal, should the wheels of justice, parliamentary decision-making, or public outrage grind to a halt, Adani won’t be the one crying foul. Oh no, the company will still walk away with a golden handshake in the form of compensation – not just for actual losses, but for imaginary profits they might have earned. And where will these disputes be sorted? Not in Kenyan courts. No, we’re talking international arbitration in London, with hearings in Mauritius. Because, apparently, Nairobi isn’t quite up to scratch.
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And what about the Kenyan workforce at JKIA? Well, don’t get too comfortable. Under Adani’s rule, employees at the Kenya Airports Authority (KAA) may face the daunting task of renegotiating their contracts. Some might find themselves with shiny new contracts, while others could be dusting off their CVs. And for those dreaming of an all-Kenyan team running JKIA, think again. Adani’s recruitment strategy seems to have a soft spot for non-Kenyan workers.
On the financial side, Adani is eyeing some sweet deals. Corporate tax breaks for a decade out of the first 15 years of their reign? Check. Full control of all revenues, expenses, and even security deposits? Double-check. And don’t forget the Air Passenger Service Charge Act, which currently helps Kenya Airports Authority keep the lights on. Adani wants to tweak that too, giving themselves the power to set charges and keep the lion’s share of what would’ve gone to KAA.
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But Adani’s ambitions don’t stop there. They’re taking control of all non-aeronautical assets at JKIA from day one – that’s everything from duty-free shops to parking. And yes, they plan on setting their own service charges, aiming for an Internal Rate of Return (IRR) of 18%, making this one of the most lucrative deals in their portfolio.
Adani is also promising to invest a hefty $1.85 billion to upgrade JKIA, including a new passenger terminal and a second runway. But with revenue projections soaring from $163 million in 2025 to a staggering $1.2 billion by 2054, the real question is: who’s reaping the rewards?
Sure, Kenya might get a shiny new airport, but at what cost? If the deal goes south, Adani will still make bank, while Kenyans may find themselves paying more for less. This isn’t just a deal; it’s a power play where the stakes couldn’t be higher. So, how dangerous is the Adani deal? Well, let’s just say, in this game, the house always wins.
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