Adani Group’s Proposed Takeover of JKIA Sparks Controversy and Worker Concerns
Documents reveal that a new entity, Airports Infrastructure PLC (AIP), has been established in Kenya as a subsidiary of Global Airports Operator L.L.C. (GAO), under Adani Enterprises based in Abu Dhabi. Registered on August 30, 2024, AIP aims to manage, develop, and upgrade airport facilities in Kenya but has yet to begin operations.
Adani Group, an Indian multinational, has proposed a 30-year concession to manage Jomo Kenyatta International Airport (JKIA) with an investment of $1.85 billion to expand its infrastructure, including a new terminal and a second runway by 2029. Under this agreement, Adani would control JKIA for three decades and restrict the development of other major Kenyan airports without its approval.
This proposed deal has raised concerns among aviation workers in Kenya. The Kenya Aviation Workers Union (KAWU) has expressed fears over potential job losses, reduced benefits, and worsening working conditions. KAWU is demanding full transparency about the deal, including the disclosure of key documents like the Public Initiation Proposal (PIP) assessment and official meeting minutes between KAA and Adani.
To address these concerns, President William Ruto met with union leaders on August 26, 2024. The government has defended the partnership with Adani, citing the need to modernize JKIA and resolve existing infrastructure issues. However, the union is still awaiting detailed documentation of the expansion project, and tensions remain high as they continue to push for clarity.
The outcome of these ongoing negotiations will be crucial in determining the future of JKIA and the broader aviation landscape in Kenya. We will keep our clients informed on any further developments.