JKIA-Adani Lease Deal: Fresh Details Show Indian Firm Wants To Build City Near Airport

Posted on 27 Oct 2024
JKIA-Adani Lease Deal: Fresh Details Show Indian Firm Wants To Build City Near Airport
  • President William Ruto's administration remained adamant about signing a deal with the Adani Group to manage the Jomo Kenyatta International Airport (JKIA)
  • Transport Cabinet Secretary (CS) Davis Chirchir revealed that the Indian firm plans to build a city facility on a 30-acre piece of land near the airport
  • Chirchir said the new project is not part of the concession deal to run JKIA for 30 years but will ramp up the airport revenues

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TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

Adani Group plans to build a new city near the Jomo Kenyatta International Airport (JKIA).

This is according to Transport Cabinet Secretary (CS) Davis Chirchir, who said the new project is not part of the JKIA concession lease deal.

Which new deal has Adani proposed to Kenya?

Speaking on Citizen TV on Thursday, September 13, Chirchir explained that the new project, which is on a 30-acre piece of land, will ramp up the airport's revenue.

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"Adani are coming in to rebuild our airport. There will be a new runway of 30,000 capacity. There will be the city side facilities, which will be built on some 30-acre piece of land that is not part of the concession.
"The revenues will basically go up as we ramp up the capacity of the airport," said Chirchir.

The new city is expected to be built on the hospitality, retail, food and beverage sectors.

"Adani Airports aims to create unique and futuristic facilities and explore the development of concepts such as hospitality district, world class retail and placemaking initiatives such as mixed use development," read a feasibility study by Adani, as quoted by Citizen Digital.

How Adani wants to develop JKIA

CS Chirchir explained that the JKIA lease deal is aimed at building only runways and modernising the airport.

According to the Kenya Airports Authority (KAA), Adani proposed developing a new terminal building, a second runway, and refurbishing the existing facilities at JKIA.

The authority said the proposal is currently undergoing technical, financial, and legal reviews.

Chirchir said the government had not reached a binding agreement with the Adani Group regarding the proposed KSh 260 billion expansion of JKIA.

However, he said the state will continue to involve citizens in the public-private partnership (PPP) deal to obtain their views.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke

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Davis Chirchir said the city project proposed by Adani is not part of JKIA concession deal.

Davis Chirchir said the city project proposed by Adani is not part of JKIA concession deal.

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