Adani Claims They Paid Ksh. 6.5M to Kenyan Government for JKIA Acquisition Proposal

Adani Airport Holdings Limited, a subsidiary of India’s Adani Group, has disclosed that it paid Ksh. 6.5 million ($50,000) to the Kenyan government as a review fee for its proposed acquisition and modernization of Jomo Kenyatta International Airport (JKIA) in Nairobi. This payment is part of the company’s $1.85 billion (Ksh. 242 billion) bid to manage and upgrade the airport.

In court documents filed on September 17, Adani confirmed that the review fee was paid to the Public Private Partnerships Facilitation Fund, in compliance with Kenyan regulations. The company’s legal team stated, “Upon submission of the PIP (Privately Initiated Proposal), the 5th respondent (Adani Airport Holdings Limited) duly paid a review fee of USD 50,000 to the Public Private Partnership Facilitation Fund.” This payment was accompanied by necessary documentation, including tax compliance and financial records, to support the government’s due diligence on the project.

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The proposal is currently under legal challenge after the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) filed a lawsuit on September 9 to block the project. Adani’s legal team has verified the payment and provided additional documentation to aid the due diligence process.

Adani has rejected claims that it has already secured a 30-year lease for the airport, asserting that the project is still in the review and due diligence stage. They indicated that the Kenya Airports Authority (KAA) has recognized their proposal and permitted them to proceed with a feasibility study.

The proposal includes a detailed feasibility study covering the project’s environmental and social impact, financial planning, and benefits for the Kenyan public. Adani’s court documents emphasize that the project aligns with national infrastructure priorities and aims to resolve long-standing issues at JKIA.

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Adani also submitted a preliminary operational plan for the airport, stressing the project’s transparency and alignment with Kenya’s infrastructure needs.

According to Kenya’s Public Private Partnerships Act, privately initiated proposals must align with national infrastructure priorities, fiscal affordability, and value for money. The law mandates a non-refundable review fee of 0.5% of the project’s estimated cost or $50,000, whichever is lower, to be paid into the Public-Private Partnership Facilitation Fund. This fee does not obligate the government to approve the proposal, ensuring each bid undergoes a fair evaluation.

Adani’s JKIA Proposal Approved in Just 17 Days

The Indian conglomerate Adani Group revealed that its proposal to the Kenya Airports Authority (KAA) for a feasibility study was approved in just 17 days, as stated by Kisii Senator Richard Onyonka.

A feasibility study assesses the viability of a project, determining if it can be successfully executed.

Senator Onyonka raised concerns during a Senate Roads and Transportation Committee meeting, questioning how such a brief period could suffice for a project of this magnitude. The committee was grilling Transport Cabinet Secretary Davis Chirchir.

Documents submitted to the committee showed that the government has initiated a due diligence process to evaluate Adani Limited’s technical and financial capability. Despite this, Chirchir clarified that no final agreement had been signed.

Onyonka also pointed to disagreements among KAA board members regarding the 30-year concession to Adani, expressing concerns about the speed of the process and the possible involvement of government officials in pushing the deal forward.

“There were suggestions that our airport, valued at 1.2 trillion shillings, could be leased for just 136 billion shillings over 35 years. Was it not apparent, Waziri, that some government officials might have a vested interest in this deal?” Onyonka asked.

In response, Chirchir defended the timeline, explaining that much of the due diligence was conducted remotely, leveraging previous case studies. He also noted that while a “Head of Terms” agreement had been reached to outline negotiation points, it remains non-binding.

Chirchir emphasized, “We haven’t signed any final agreements yet. We are currently conducting stakeholder consultations and due diligence, which will inform the final concession agreement.”

Despite this explanation, legislators such as Narok Senator Ledama Ole Kina, Nairobi Senator Edwin Sifuna, and Kisii Senator Richard Onyonka continued to challenge Chirchir, accusing high-level government officials of favoring Adani in the 30-year lease deal for the airport.