Close

RAGING DEBATE

JKIA is 10 per cent of Kenya's wealth - Ministry report

Total aviation assets valued at about Sh1.2 trillion in the latest review by the Lands ministry.

In Summary

• Airport's asset value said to be root of the raging debate on plans to nationalise KQ.

• Transport committee chairman David Pkosing asks MPs to take part in public participation forums on the matter. 

JKIA arrivals and departure terminal.
KENYANS ASKED FOR VIEWS: JKIA arrivals and departure terminal.
Image: FILE

Jomo Kenyatta International Airport is currently worth Sh1.1 trillion, the Lands ministry reveals. 

A valuation report obtained by the Star shows that the airport’s market value stands at Sh1.1 trillion, with an insurance value of Sh200 billion. 

This accounts for close to 10 per cent of Kenya's gross domestic product currently at about Sh10 trillion. 

 
 

JKIA’s land can earn up to Sh7.5 million per acre per year while the retail shops can fetch up between Sh200 and Sh250 per square feet per month.

Office spaces at the country’s main airport were valued at Sh100 – Sh250 per square feet per month as of June 2018.

JKIA Terminal 1A is currently valued at Sh7 billion; Terminal 1B-1C (Sh5.7 billion); Terminal 1D (Sh1.5 billion); Terminal 1E (Sh700 million) whereas Terminal 2 is valued at Sh900 million. 

The presidential pavilion is valued at Sh17 million, the same being the value of the Deputy President’s VIP lounge.

JKIA substation buildings are worth Sh56 million, the freight terminal Sh256 million while the primary screening area is valued at Sh104 million.

KAA head office is valued at Sh323 million; parking garage/Paul Caffe (Sh1.8 billion); old Embakasi Airport buildings (Sh600 million); freight terminal (Sh256 million). 

The three JKIA aprons are currently worth Sh77.4 billion; 12 taxiways at Sh46.4 billion while the JKIA runway is valued at Sh20.9 billion.

 
 

JKIA’s paved main access road is worth Sh1.52 billion; walkways (Sh217 million); car parking areas and shades (Sh187 million); fences (Sh261 million); water system (Sh210 million); gates (Sh800,000); and airfield ground lighting (Sh1.1 billion).

The country's total aviation assets - excluding aeroplanes, adds to about Sh1.3 trillion according to the report. 

Wilson Airport is worth Sh42 billion of which land accounts for about Sh32 billion. Moi International Airport is Sh23.7 billion; Kisumu International Airport (Sh9.95 billion); Eldoret International Airport (Sh11.6 billion); Eldoret Airstrip (Sh2.24 billion); Isiolo International Airport (Sh6.9 billion); whereas Embakasi Village – housing JKIA staff is valued at Sh2.62 billion.

The assets are said to be the spark of the raging debate on the Kenya Airways nationalisation plan.

The endeavour, aimed at consolidating all aviation assets under an entity trading as Kenya Aviation Corporation, has sparked a political storm.

National Assembly Speaker Justin Muturi recently ordered further public participation on the National Aviation Management Bill, 2020 which outlines the plan.

This followed protests against the consolidation of assets; that the bill was rushed; and that there was no feasibility study to inform the legislative proposal.

The Bill proposes the creation of three entities – Kenya Airways, Kenya Airports Authority, and Aviation Investment Corporation.

The House Transport committee chaired by Pokot South MP David Pkosing is expected to receive more memoranda on the proposal this week.

The MP on Tuesday asked Kenyans, including his colleagues in Parliament, to consider giving their views on the legislation.

Pkosing dismissed assertions that the nationalisation would result in a merger of KAA and KQ; and also that the Bill was rushed.

“Each of the operating entities has their roles cut out. There is no point of a merger as KQ will continue with its transport role whereas KAA would still manage the country’s airports and airstrips.”

He further allayed fears of job losses saying KAA and KQ will simply transfer their services to the proposed entities.

“A nationalised KQ cannot be compared with the PIIP proposal which said staff were to be moved from KAA to KQ,” Pkosing said.

JKIA’s X-ray scanning area is valued at Sh21 million; ablution block (Sh2 million); primary screening main category (Sh55 million); passenger screening house (Sh1.7 million); pedestrian canopy (Sh1.1 million); petrol station (Sh30 million); KAA training school (Sh64 million); training school extension (Sh14 million).

The airport’s courtyard and court hall have a total value of Sh22 million; Airports authority PMO (Sh48 million); cargo village buildings (Sh140 million); bonded warehouse (Sh48 million); Courier/DHL house (Sh150 million); animal holding section (Sh9 million); KPLC operations office (Sh2 million); Switch House (Sh7 million); generator house (Sh19 million); fire station (Sh38 million); water tanks (Sh126 million); boreholes (Sh50 million); telephone control centre (Sh5 million).

The airport’s rooftop offices are worth Sh107 million while the semi-permanent rooftop offices are valued at Sh14 million; underground tunnels (Sh111.7 million); pump house (Sh38 million); presidential dais (Sh18.7 million); State pavilion ablution block (Sh4.6 million); and state pavilion swimming pool (Sh9.3 million).

For airstrips, the valuers found that Embu is worth Sh700 million; Kitale (Sh4.1 billion); Lodwar (Sh1.4 billion); Malindi (Sh4.25 billion); Lamu Airport (Sh4.3 billion); proposed Nakuru airstrip (Sh2.06 billion); Nanyuki (Sh1.3 billion); Ukunda (Sh2.4 billion); Lokichoggio (Sh1.7 billion); and Kakamega (Sh1.74 billion). 

Edited by R.Wamochie