Adani Group has submitted a proposal to develop Nairobi airport on a public-private partnership basis, Kenya Airports Authority (KAA) said in a statement.
Nairobi airport, which is a hub for Kenya Airways, was the seventh busiest airport in the continent in terms of passenger traffic in 2022. The airport is an important gateway in East Africa for cargo especially for exports of cut flowers.
KAA disclosed the details on Wednesday following local protests over lack of transparency in the process. According to a media report, the government clarified on Tuesday that the airport is not being sold following allegations of a “secret deal.”
Adani Group declined comment. Currently, the group has a portfolio of eight domestic airports, including the upcoming one in Navi Mumbai
The group has already signed an agreement to acquire 95 per cent stake in a container terminal in Tanzania.
KAA CEO Henry Ogoye said the authority has received an investment proposal under the Public Private Partnerships Act 2021 from Adani Airports Holding Ltd. The group proposes to invest in a new passenger terminal building, second runway and refurbishment of existing facilities at Nairobi airport.
The authority added that the proposal will be subject to technical, financial and legal reviews alongside requisite process under the 2021 Act.
“The project agreement will be preceded by stakeholder engagement, the national treasury approval, the attorney general clearance and the cabinet approval,” Ogoye said in a statement.
He said the airport funded can not be financed without recourse to private funding. There will be no job losses, he added