Adani-JKIA deal raises concern in India’s Congress

Protests by Kenyans against Adani Group’s planned take-over of the Jomo Kenyatta International Airport (JKIA) has caught the attention of the Indian National Congress, which has questioned the deal.

This, as a team of sixteen Kenyan officials who left Nairobi on Tuesday pitch tent in Mumbai in what has been termed a “due diligence” mission to scrutinise the firm’s books and previous projects before a final decision is made.

The Indian multinational has submitted a proposal to the Kenya Airports Authority (KAA) to take over JKIA in a 30-year concession arrangement that involves upgrading of the facility.

Adani plans to invest up to $750 million (about Sh96.6 billion at current exchange rate), in construction of a second runway; a new passenger terminal, associated apron and taxiway systems among other developments, in a build-operate-transfer module that will allow it recoup its investment.

The proposed agreement includes raising airport charges to compete with regional facilities and a fixed concession fee to the Kenya Airports, a move that has widely been criticized by Kenyan lobby groups, led by the Kenya Aviation Workers’ Union (KAWU).

Kenya’s Labour and Social Protection Cabinet Secretary Alfred Mutua has promised to avail documents of the expansion and refurbishment deal to the aviation workers.

However, the deal has now been termed “a matter of grave concern for India” as reported by media outlets in the South Asian country.

This is on the back of the protests in Kenya, where KAWU, the Shippers Council of Eastern Africa and a section of public have called out the government over the deal, with over 3,000 jobs said to be on the line.

According to India’s newspaper “The Times”, Adani’s proposal came up before the Indian Congress, which called it a move that could “convert into anger against India and the Indian Government.”

Adani’s previous deals have also come into criticism including where in December last year, protesters led by opposition parties marched to billionaire Gautam Adani's offices in Mumbai to voice their opposition to his conglomerate's $614 million (Sh79 billion) slum re-development plan in the city.

…"This is a matter of grave concern for India, because the non-biological PM’s friendship with Mr. Adani is now globally well known. The protests (in Kenya) can therefore easily convert into anger against India and the Indian Government," Congress spokesperson Jairam Ramesh is reported to have said. 

Ramesh has also linked the former Bangladesh prime minister’s last month resignation to government’s contract to purchase power from Adani’s coal plant in Jharkhand, which became “a flashpoint” in the protests that began as demonstrations by students against government job quotas, leading to her exit.

Last week, the Parliamentary Public Debt and Privatisation Committee, in Kenya’s National Assembly, called for a pause on negotiations until details of the deal are made clear.

Kinangop MP Kwenya Thuku said government’s laxity in providing information was the reason for speculation and suspicion around the deal.

On Wednesday, CS Mutua (Labour) pledged to rally KAA to provide all available information regarding the planned Public-Private Partnership (PPP) deal. 

“I requested that the workers wait for the release of the necessary documents and further clarification from their employer before taking any further action. I assured them of my and the Ministry of Labour’s commitment to fairness and emphasise that their concerns—especially regarding how the proposed PPP will affect their rights and employment terms—will be addressed promptly,” Mutua said.

KAWU Secretary General Moses Ndiema had earlier indicated that the government had released “few documents” on conditions that they will not share them to other union members or fellow employees. 

 The workers said they are not opposed to the mordernisation of the airport through the deal, but are against how the deal is being carried out in secret.

Ndiema said JKIA is making its own money and can finance its own modernisation including expansion plans.

He said if a new investor was to come in, they should build a new terminal at JKIA and manage it.

“We are not ready to surrender it to anyone. We are going to do this (demonstrate) daily until Adani goes,” he said; with the union plotting a major strike. 

The protests seem not to deter the matchmakers as Adani Enterprises has gone ahead and set up a Kenyan subsidiary as it eyes the deal, with Kenyan officials’ trip to India indicating the plan remains in place.

The government has however maintained that the deal is not yet in place.

“The review of the proposal by Adani for JKIA upgrade is ongoing. The National Treasury will give a comprehensive submission after concluding the review,” PS Chris Kiptoo said.