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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Adani’s JKIA Proposal Approved in Just 17 Days

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.

No Flights Departing from JKIA: Passengers Stranded as Workers Strike Over Adani Agreement

On Tuesday night, September 10, hundreds of passengers found themselves stranded at Jomo Kenyatta International Airport (JKIA) as a strike by Kenya Aviation Authority (KAA) workers began. The strike, which commenced at midnight, was in protest against a deal involving Adani Group Holdings, leading to severe disruptions.

The industrial action led to long queues and major delays, with numerous flights grounded. Some passengers remained on the runway for hours after the strike began. Journalist Larry Madowo, who was on one of the last flights before the strike, tweeted, “I’m on one of the last flights out of JKIA at 23:59 hours if I make it—before the airport workers’ strike begins at midnight.”

With the strike in effect, no planes were allowed to depart, causing congestion at the airport. Traveler Edwin Dande voiced his frustration, noting, “There are now brokers getting paid to get you to the front of the line.”

The Kenya Aviation Workers Union (KAWU) had previously warned of the strike, criticizing the government for not addressing their concerns over the secretive deal with the Indian conglomerate Adani Group, which is set to manage JKIA. Workers fear that the deal could result in mass layoffs. The union has stated that operations will not resume until the details of the agreement are disclosed.

The situation was further complicated by reports of mixed incoming and outgoing passengers, raising security concerns. “JKIA is completely overwhelmed,” remarked one passenger.

As the government has yet to respond to the workers’ demands, the situation at Kenya’s busiest airport remains tense, with many passengers anxiously waiting to see if negotiations will resolve the crisis.

Mudavadi Moves to Quell Protestors’ Fears That JKIA Has Been Sold

In the last few days there have been rumors that JKIA is being sold. These rumors provided the spark for the latest calls for protests on Maandamano Tuesdays. I covered the reasons more in depth in this article:

Why Kenyans Want to Occupy JKIA Today

To get ahead of the rumors, Prime Cabinet Secretary Musalia Mudavadi has come out to say that JKIA is not for sale. In a press briefing this morning, he said:

Let me discount immediately that the airport is not for sale. This is a public asset. It is a strategic asset, and if it was going to be sold, it has to go through a full public process that parliament endorses. So anybody who is given the impression that Jomo Kenyatta airport has been sold, is not being factual. It is not true.

He however admitted that there were some plans in place to modify the airport

What we need to appreciate is that we need to modernize our airport. That means investment will have to take place at the airport. We need a new terminal. You remember there was a greenfield terminal but it never took off. The contractual engagement had its challenges. There was litigation, it stalled, and the rest is history. Going forward, the Kenya Airports Authority must look at its investment program and ensure that everything is transparent.

Here is the full video of the statement by Mudavadi:

Enhanced security measures are in place at JKIA in anticipation of the upcoming maandamano

A team of security officers from various units has been deployed to ensure the safety of travelers and the smooth operation of JKIA in light of anticipated protests targeting the airport. Reports indicate that a group of demonstrators plans to occupy the facility.

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A recent spot check revealed a significant presence of officers, including those from the General Service Unit (GSU) and anti-riot units from the Administration Police Service.

Sources within the security apparatus reported that the deployment followed a lengthy meeting on Monday between senior security officials and the Kenya Airports Authority (KAA) at the airport.

At the primary screening area, the main entrance to the airport, hundreds of armed security personnel were stationed from 6 a.m. onwards.

This area, typically monitored by regular officers from the JKIA police station, has been reinforced with additional GSU officers from the nearby Embakasi Training School.

Despite the increased security measures, airport services continued without interruption, with comprehensive security checks being conducted for all entering the facility.

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Some companies at the airport have advised their employees to stay home as a precaution.

Acting Inspector General of Police Douglas Kanja issued a reminder on Monday about the legal repercussions of breaching security and entering protected areas.

“In anticipation of the demonstrations scheduled for July 23, 2024, it is essential to remind the public of the legal restrictions governing access to protected areas,” Kanja stated on Tuesday evening.

He explained that the Protected Areas Act Cap 204 Laws of Kenya prohibits unauthorized entry into designated protected zones.

“According to the Protected Areas Order, as detailed in Legal Notice No. 9 of 2011, the Second Schedule includes the LPG Plant, the Bitumen Plant, and Petroleum depots at the Embakasi Aviation Depot (JKIA),” he said.

Kanja also noted that Section 58 of the Kenya Civil Aviation Act No. 21 of 2013 outlines penalties for trespassing on government or licensed airfields.

“We urge all participants in the demonstrations to adhere to these legal requirements and avoid entering or interfering with protected areas. The National Police Service is committed to enforcing these laws,” Kanja warned.

Taxes on goods: Everything you need to know about KRA’s regulations at JKIA

The Kenya Revenue Authority (KRA) has established new regulations requiring travelers entering Kenya from international destinations to declare personal items valued at $500 (approximately Sh75,000) or more. This declaration requirement applies to a wide range of items, including:

  • Items purchased and carried upon returning to Kenya
  • Inherited items acquired abroad
  • Items purchased at duty-free shops, on ships, or on airplanes in excess of the permitted limits
  • Repairs or alterations made to items taken abroad and subsequently brought back, even if the services were provided free of charge
  • Items brought for others, including gifts
  • Items intended for personal or business use, including business items taken out of Kenya on the trip
  • Currency exceeding $10,000 or its equivalent must be declared at customs upon arrival

According to KRA, travelers must provide the actual purchase price of each item on the Passenger Declaration Form, expressed in US dollars. “The price should include all taxes. If you are unsure, estimate the value. If you did not personally purchase the item, such as if it is a gift, estimate its fair retail value in the country where you received it,” KRA stated.

KRA emphasized that even if an item was used during the trip, it remains subject to customs duty. “You must declare the item at the price you paid or, if it was a gift, at its fair market value,” the authority clarified.

Following an outcry from Kenyans over the implementation of the East African Community Customs Management Act of 2004, which mandates travelers entering Kenya to pay customs duty on personal goods, government spokesperson Isaac Mwaura announced last week that the Kenya Revenue Authority will review the $500 tax on personal items. The tax is mandated under the East African Community Customs Management Act, and any revision would require consultation with other EAC member states.

In comparison, South Africa allows goods valued up to 5,000 rands (approximately $271 or Sh41,101), while Nigeria’s limit is $63.49 (Sh9,593).

Guns and dildos: KRA’s haul at JKIA a mixed bag

Large consignments of prohibited commodities have been confiscated by the Kenya Revenue Authority (KRA) customs department at Jomo Kenyatta International Airport (JKIA) throughout the past four months. The tax collector claims that during the July–October 2023 period, the authority made 440 interceptions, of which 132 were illegal and 431 were restricted items.

14 sex toys, 58 shisha and shisha utensils, 24 boxes of Viagra, and 60 bleaching creams are among the prohibited goods. Additional illegal objects intercepted were 339 drones, 7 weapons, 18 toy guns, 11 magazines, 8 handcuffs, and 24 walkie talkies.

It is reported that the items were discovered following passenger scrutiny by the KRA.

The inventory kept at the largest airport in Kenya provides an insight into the changes that have occurred in the personal lives of Kenyans, the majority of whom are young people.

Some of the things are unclear as to why they shouldn’t be permitted into the nation, and the type of evidence required to clear them is even more ambiguous. Both male and female sex points are in more demand, as seen by the numerous social media accounts that are outright selling them.

Humphrey Wattanga, Commissioner General of KRA, stated that it is crucial to remember that any items that are intercepted at the Point of Entry—especially weapons and drones—must have the necessary authorization given by the appropriate state authorities.

“We have a mandate to safeguard legitimate trade by ensuring that items subject to Customs duty are accurately assessed and duly paid for,”

For example, the KRA demands variety of credentials, including one proving the drones’ airworthiness, from anyone importing them.What kind of evidence someone would present to demonstrate their ability to utilize dildo efficiently is unclear.

fast search on social media indicated that these devices are accessible locally, so it’s possible that distribution rather than use is the restriction.However, the rationale behind these limitations continues to baffle. According to KRA, visitors to the nation may retrieve prohibited goods that its agents have seized as they leave the Customs Office.

The KRA’s Border Control Enforcement Unit has been intercepting more commodities that are illegal or restricted, hence the terminal visit was scheduled during this period.

Moral cop Ezeikel Mutua angered by mating wildebeests sculpture erected at JKIA

Ezekiel Mutua, the head of The Kenya Film Classification Board (KFCB) and a man who Kenyans believe is the official moral cop in Kenya, is not happy yet again.

This time round is because of a statue erected at JKIA which has two wilder beast mating.

Sexually suggestive

Mutua was angered by the sculpture which he called immoral. He called it thoughtless.

“This sculpture is bizarre and thoughtlessly sexualized. The sexual connotation depicted in this sculpture adds no value to the marketing of Kenya to tourists arriving or leaving JKIA,” he said.

“It’s the work of a dirty mind trying cheaply to sell their creativity. It is not different from the dirty minds who sexualize adverts on TV or on outdoor advertising.

The sculpture

“This sculpture would not lose any value if the animals were simply grazing in their natural habitation. The mounting aspect sends a wrong message and the sculpture must change,” he said. 

Adding:

“It fails our suitability criteria for content or information meant for public exhibition. We should not allow such bizarre ads and marketing strategies that are meant to create unnecessary sexual innuendo. We need to sober up!”