Adani Group Promises Kenya Govt Over KSh 6b in Revenue During First Year of Managing JKIA

 

Chairman of Adani Group Gautam Adani 

Kenya will receive over KSh 6 billion in the first year of Adani Group's operation at Jomo Kenyatta International Airport (JKIA).  This is if the government agrees to the concessional terms offered by the firm under the Public-Private Partnership (PPP). How long will Adani Group run JKIA? Adani Group sought to run JKIA for a period of 30 years, starting in 2025.  According to Business Daily, the multinational conglomerate proposed refurbishing the airport for $1.85 billion (KSh 242.1 billion, based on the current exchange rate of KSh 130.9 per US dollar). While speaking in Mombasa on Sunday, July 28, President William Ruto said the private investor will help upgrade JKIA by building a new runway and terminal and refurbishing the airport. "We want to work with the private sector to do three critical things for our airport. This includes building a new terminal and runway, refurbishing what we have, and removing the canvas," he said.  Ruto explained that the PPP model will bring in private-sector resources that will blend with the government's in a win-win agreement. How much will govt get from leasing JKIA? The company estimated its first-year (2025) revenue at $163 million (KSh 21.3 billion). Out of the revenue, $47 million (KSh 6.2 billion) will be for the Kenyan government. Adani Group proposed a revenue estimate of $290 million (KSh 37.9 billion), out of which $52 million (KSh 6.8 billion) will go to the government in 2030. Other revenue estimates include KSh 96.8 billion in 2045 and KSh 157 billion in 2054, earning Kenya between KSh 9 and KSh 10 billion in the respective years. Why govt wants to lease JKIA The government planned to upgrade the Jomo Kenyatta International Airport under a medium-term investment plan. President Ruto said the refurbishment of the airport into a modern facility will be successful with the help of private sector players. The head of state refuted ongoing claims that his government planned to sell the airport, which is a strategic national asset. 

by  Wycliffe Musalia