President William Ruto’s efforts to prevent a strike by airport workers over the controversial Ksh246 billion Jomo Kenyatta International Airport (JKIA)-Adani deal have encountered significant resistance. In a tense five-hour meeting held at State House on Monday evening, Ruto, along with top government officials, attempted to dissuade the Kenya Aviation Workers Union (KAWU) from proceeding with their planned strike, scheduled for Sunday, September 1. However, the union remained steadfast in its demands for full transparency regarding the deal.
The workers, represented by KAWU, are demanding the release of the Adani Public Initiation Proposal (PIP) assessment report and the minutes from negotiations between the Kenya Airports Authority (KAA) and Adani Holdings Limited. Without these documents, they have vowed to go on strike, a move that could potentially disrupt Kenya’s aviation sector.
The deal in question involves the Adani Group leasing JKIA, which generates Ksh49.063 billion in annual revenue, for a period of 30 years. Under the terms of the proposal, Adani would pay the government an annual concession fee of $50 million (Ksh6.4 billion), which would increase by 10% every five years. Additionally, Adani would receive an 18% equity stake in perpetuity. The deal also includes plans to refurbish terminal buildings, improve taxiways, and potentially build a new runway, with funding sourced from airport revenue, increased fees, and private investments.
The proposal has sparked significant concerns among workers and the public. Critics argue that the increased fees associated with the deal will be passed on to airport users, leading to higher ticket prices and additional tax burdens on Kenyans. Furthermore, the workers question the necessity of involving Adani Holdings in the project, given JKIA’s existing liquidity and capacity to finance such developments.
During the State House meeting, President Ruto urged the union to withhold judgment until they had a comprehensive understanding of the deal, emphasizing its potential benefits for the country. However, the workers remained unconvinced and insisted on receiving the requested documents before making any decisions.
In response to the workers’ demands, President Ruto directed Transport Cabinet Secretary Davis Chirchir to provide detailed information on the project and the terms of Adani Holdings Limited’s proposal. Despite assurances that the documents would be released by Thursday, August 29, the union leaders maintained their stance, leaving the threat of a strike unresolved.
Adding to the ongoing tensions, National Treasury PS Dr. Chris Kiptoo confirmed to the National Assembly Committee on Public Debt and Privatization that a review of Adani Airports Holding Limited’s proposal was underway. He assured the committee that a comprehensive submission would be made once the review was completed.
As the situation unfolds, the Kenyan government faces the dual challenge of addressing the concerns of the airport workers while attempting to move forward with a deal that it argues is crucial for the development and modernization of JKIA. The outcome of the impending strike and the government’s ability to provide the necessary transparency will likely play a significant role in determining the future of the controversial airport deal.
