The Kenya Association of Air Operators (KAAO) has expressed serious concerns regarding the proposed concession of Jomo Kenyatta International Airport (JKIA) to Adani Airports Holdings Limited (AAHL). Following a comprehensive review, KAAO’s board has called for a reevaluation of the process, emphasizing the need for transparency, inclusivity and adherence to Kenya’s Public-Private Partnership (PPP) Act.
Key Issues Raised:
- Single-Bidder Concern: KAAO criticized the one-bidder approach, questioning the credibility and selection process for Adani Airports as the proposed partner. The association insists on a competitive bidding process to ensure fairness and optimal outcomes for stakeholders.
- Lack of Stakeholder Engagement: The board highlighted the insufficient involvement of critical stakeholders, including aviation operators, public users, and policymakers, during the development of this proposal.
- Absence of a Comprehensive Vision: KAAO underscored the need for a robust master plan for JKIA’s future. This should include strategic upgrades such as a second runway and terminal expansions to bolster JKIA’s position as a regional hub.
- Inadequate Feasibility Study: The association noted that the feasibility study shared by AAHL lacked crucial elements, including a financial model, raising questions about the proposal’s overall viability and long-term sustainability.
- Stakeholder Opposition and Legal Challenges: A coalition of aviation workers, along with organizations like the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK), has legally challenged the concession. This opposition recently led to a temporary suspension of proceedings pending judicial review
KAAO’s Recommendations:
- The association advocates a return to the drawing board to ensure an inclusive, transparent process.
- It urges alignment with Kenya’s National Aviation Policy to maximize JKIA’s growth potential and safeguard national interests.
- KAAO recommends engaging stakeholders from the outset to address shared concerns and aspirations.
The $1.85 billion concession is part of a larger effort to modernize JKIA, a key gateway for trade and tourism in the region. However, regional competition and concerns about foreign control of strategic assets have made this a contentious issue.
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