Indian lawmakers have warned that Adani Group proposed takeover of Jomo Kenyatta International Airport (JKIA) will cause anger against India because of the close relationship between Gautam Adani and Narendra Modi, the Asian country’s prime minister.
The 30-year concession deal that will see Adani Group refurbish and operate JKIA, the largest transport hub in East Africa, has faced opposition from aviation sector workers and activists, even as the Kenyan government sent 16 representatives to India for due diligence.
“Today, the PM’s collusion with the Adani Group has contributed to the diminishing of this strength and unprecedented reversals for India on the global stage–just one of the many sacrifices the country has had to make at the altar of the non-biological PM’s special friendship,” Jairam Ramesh, Indian Congress spokesperson, said on X.
Since Monday, aviation workers’ union has staged strikes, disrupting operations at the country’s main airport. The union fears the deal will lead to mass layoffs and unfavourable working conditions.
Kenyan subsidiary
On August 30, Adani Group through its Dubai holding firm registered wholly-owned a Kenyan subsidiary–Airports Infrastructure PLC (AIP), regulatory filings show. Despite the opposition, the Kenyan government is keen to hand over JKIA by November.
The willingness of top Kenyan government officials to go on with the transaction– after President Ruto initially denied the JKIA concession plan–has been questioned by the National Assembly Privatisation Committee.
On August 28, the committee also wants the deal suspended until details are made public. The Adani deal came to light after a whistleblower leaked the details, which raised questions about whether the public procurement and privatisation laws were followed.
Ramesh warned the transaction could cause anger similar to the anger witnessed in Bangladesh, which led to the collapse of the government.
“The Bangladesh Government’s contract to purchase power from Adani’s coal plant in Jharkhand, for instance, became a flashpoint in the protests that led to PM Sheikha Hasina’s resignation last month,” Jairam Ramesh, Indian Congress spokesperson, said.
JKIA is wholly owned by the government through the Kenya Airports Authority (KAA), a state parastatal that develops and operates all airports in the country. The airport accounts for 66% of passenger traffic annually.
In 2023, JKIA handled over seven million passengers and 1.2M tonnes of cargo. The facility reported $33.8 million in net profit (KES4.33 billion). The airport serves Kenyan and neighbouring East African countries.
It also serves as the main hub of national carrier Kenya Airways. Adani has been involved in numerous scandals including insider trading which saw massive sell-off of its stock in 2023.
The company has since recovered, and has set its eyes on expanding its operations. Besides the airport deal, the company has also bagged major power deals, raising questions about the relationship between the billionaire and the Kenyan political class.
