Adani Group Sets Up Company In Kenya Despite Widespread Opposition To JKIA Deal

• Adani Group has established a new subsidiary in Kenya named Airports Infrastructure PLC (AIP)
• Adani Group submitted a proposal to the Kenya Airports Authority (KAA) for a 30-year concession to operate and manage JKIA
• The JKIA takeover deal has sparked protests from Kenya airport workers and criticism from the wider public due to various concerns

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

Adani Group has set up a Kenyan subsidiary despite widespread opposition to the Jomo Kenyatta International Airport (JKIA) takeover deal.

According to filings made by the Adani Group with the National Stock Exchange of India on August 30, the new subsidiary in Kenya will be called the Airports Infrastructure PLC (AIP).

"AIP is incorporated to take over, operate, maintain, develop, design, construct, upgrade, modernise and manage the airports," the filing reads in part as reported by Business Daily.

The Kenyan subsidiary was established by Global Airports Operator, a subsidiary of Adani Enterprises from Abu Dhabi.

Although the subsidiary has not yet begun operations or generated revenue, its creation indicates Adani's ongoing push to proceed with the takeover of JKIA despite growing domestic opposition to the deal.

Details of Adani deal for JKIA

Following public outcry on social media and rising voices demanding information on the JKIA takeover, the government released information that Adani submitted a proposal to the Kenya Airports Authority (KAA) to operate JKIA under a 30-year concession.

The proposal includes a $750 million (KSh 96.66 billion) investment for the development of a new terminal, apron, and taxiway systems, with completion expected by 2029.

An additional $92 million (KSh 11.85 billion) will be used to further improve the taxiway system by 2035.

Adani also plans to spend $620 million (KSh 79.91 billion) on new facilities, ensuring seamless integration with existing infrastructure.

The company is proposing a city-side development featuring hospitality and business centres and will operate JKIA for 30 years with a guaranteed internal rate of return (IRR) of 18% on equity.

During this period, Adani will have the authority to set dollar-denominated charges for airport services.

Opposition to Adani's JKIA takeover

The deal has received widespread opposition from Kenyans and leaders.

Many have criticised the government for signing off control of the airport, considering its strategic importance to the economy and national security.

Kenya airport workers have also gone on strike, raising concerns about job security.

In an earlier report by TUKO.co.ke, Prime CS Musalia Mudavadi, while appearing before parliament, said that a deal to hand over JKIA would only be allowed through public participation.

The CS noted that JKIA is a public and strategic asset that can only be sold through a public process involving Parliament.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke

Kericho: Marauding Elephant Tramples On Teacher To Death As He Takes Pictures
List Of Top SACCOs You Can Join In Kenya Giving Loans Up To KSh 40b, Their Assets
Comparing Kylian Mbappe’s Stats To Messi And Ronaldo At 25

Adani Group JKIA takeover deal.

Pressure mounts on KAA for transparency in alleged Adani Group deal for

Kenya sued over tycoon Adani JKIA deal | Nation