The government on Wednesday dismissed allegations of planning to sell the iconic Jomo Kenyatta International Airport (JKIA) to an Indian-based multinational conglomerate.
In a statement, the Kenya Airports Authority (KAA) clarified that it only reached a public-private partnership with the company purposely for the infrastructural development of the airport and not a deal to sell it.
According to the Authority, despite JKIA being a strategic national asset, its ageing infrastructure posed a threat to the country’s regional competitiveness.
"The attendant investment requirement is significant and cannot be funded with the prevailing fiscal constraints without recourse to private funding," the Authority noted in a statement.
KAA disclosed that the agreement with the company included the construction of a new passenger terminal, the establishment of a second runway and the refurbishment of the existing facilities within the airport.
The Authority further revealed that the deal was sealed following cabinet approval of the JKIA Medium Term Investment Plan that encompassed the upgrade of the passenger terminal building, runway, taxiway and apron.
According to KAA, the proposal submitted by the company would first be subjected to technical, financial and legal reviews to ensure compliance with the Public-Private Partnerships Act 2021.
“I wish to assure our staff that no jobs are at risk,” reiterated Henry Ogoye, KAA Managing Director.
“I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits,” he added.
The clarification comes hardly two days after the Prime Cabinet Secretary, Musalia Mudavadi similarly refuted similar allegations and revealed that the investors would be working under the Public Private Partnership (PPP) to construct a terminal in the airport.
“JKIA is not on sale. This is a public asset. It is a strategic asset and if it was going to be sold, you can only do it after a full public process that Parliament endorses,” Mudavadi explained.
“We need a new terminal, there was a green terminal but it never took off, the contractual agreement had its challenges,” the CS added.
