Kenya Airports Authority (KAA) is set to finalise a deal with India’s Adani Group following a due diligence mission currently underway in Mumbai, officials said.
Kenya’s state officials departed the country on Tuesday to meet with Adani executives, amid growing domestic opposition to the proposed agreement.
A senior KAA official, speaking on condition of anonymity, told Business Day Africa that the deal will be concluded once the team returns and is satisfied with its findings.
“No agreement has been reached yet. The officials are in India for a due diligence mission, after which the deal will be signed,” the official said.
The visit comes shortly after Adani established a local subsidiary, Airports Infrastructure PLC, which is expected to manage and modernise airports in Kenya.
The company has proposed a Ksh97 billion investment to develop a new terminal building, associated apron, taxiway system, and two rapid exit taxiways at Jomo Kenyatta International Airport (JKIA).
JKIA, a strategic national asset built in 1978, faces challenges from aging infrastructure that threaten its regional competitiveness.
The Kenyan Cabinet has approved a Medium Term Investment Plan for JKIA, covering upgrades to the passenger terminal, runway, taxiway, and apron.
KAA noted previously that the required investment is substantial and cannot be financed through existing fiscal resources, necessitating private funding.
According to the agency, the project agreement will require stakeholder engagement, approval from the National Treasury, clearance from the Attorney General, and Cabinet approval, while assuring that no jobs will be lost.
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Publish date : 2024-09-04 07:58:11
