Kenya sees new JKIA partner after scrapping Adani deal, says CS Mbadi

The government has announced that it is open to a new investor taking on the expansion of the Jomo Kenyatta International Airport (JKIA) following the cancellation of the Adani-JKIA deal.

Finance Minister John Mbadi said on Saturday, November 23 in Kisumu that the government is now free to explore new partnerships with interested parties.

He explained that the Adani deal was structured as a privately initiated partnership (PIP), which could be terminated at any time. Mbadi emphasized that this termination was possible because the contract had not yet been signed, which was the case in Kenya.

“The Adani procurement system was a PIP, which meant it could be terminated at any time and at any stage as long as you have not signed the contract,” he announced.

“We are still open to any other investor who wants to invest by partnering with government to develop JKIA,” Mbadi confirmed.

The CS added that it was imperative that renovation work be carried out at JKIA due to its deteriorating condition and pressing issues. This year, videos emerged of the international airport leaking from the roof during heavy rains.

“The investment is a must as we need to address the plight of JKIA. JKIA is now outdated and dilapidated. It is not an airport that can compete with others in the region,” he noted

Mbadi’s comments followed President Ruto’s cancellation of the JKIA-KETRACO-Adani agreements, which were valued at Ksh338 billion. Ruto announced this decision during his State of the Nation address on Thursday, November 21.

The cancellation came after Gautam Adani, the founder and CEO of the multibillion-dollar Adani company, was indicted by the Department of Justice (DOJ) along with seven other executives. New York on November 20 for alleged bribery of Indian government officials.

According to a CNN report, Deputy Assistant Attorney General Lisa Miller stated that the bribes were intended to convince officials to lie to investors and banks in order to rake in billions of dollars and obstruct justice.

“This indictment alleges plans to pay more than $250 (approximately Ksh32 billion) million in bribes to Indian government officials. These violations were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of American investors,” she stated.

However, Adani has come out and denied the allegations and stated that the allegations had been made against the company were “unfounded”.