Kenyan High Court Slams Brakes on Adani’s Takeover of JKIA

The Kenyan High Court has put a temporary halt to plans that would have handed over the operation of Nairobi’s Jomo Kenyatta International Airport (JKIA) to India’s Adani Enterprises for three decades. The Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) urgently contested the proposed lease, arguing that such a deal undermines Kenya’s governance principles and puts public funds at risk.

The contentious 30-year lease, valued at $1.85 billion, would see Adani modernize the airport by constructing a new runway and terminal under a build-operate-transfer (BOT) arrangement. However, KHRC and LSK insist that Kenya is fully capable of financing the expansion without external interference. According to lawyer Dudley Ochiel, the proposal is not only financially unsustainable but could lead to job losses, exposing Kenya to disproportionate fiscal risks while offering little in return to taxpayers.

Judge John Chigiti ruled in favor of temporarily suspending the deal, citing the urgency of the case and ordering that no agreement be signed with Adani until the matter is fully resolved. A court mention is set for October 8, when a judgment date may be determined.

The petitioners are particularly concerned that, beyond the initial 30 years, Adani would retain an 18% stake in JKIA’s aeronautical business. This would entitle the company to a perpetual concession fee, starting at Ksh6 billion, escalating every five years. Ochiel argues that such a deal fails to equitably distribute the burdens and benefits of public resources between present and future generations, as required by the Kenyan Constitution.

Additionally, the terms of the proposed agreement allow Adani to acquire nearly 30 acres of prime land near JKIA for development, along with a decade of tax-free operations, imported labor, and free work visas, further straining local employment opportunities. The petitioners accuse Adani of violating constitutional protections related to workers’ rights and the prudent management of national assets.

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