In a significant development, Kenya’s High Court has issued a temporary injunction blocking a proposed deal that would have seen India’s Adani Group lease the country’s main airport for 30 years. The deal, which involved expanding the airport in exchange for the lease, has faced strong opposition from various stakeholders.
The Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) filed a joint application with the court, arguing that Kenya could independently finance the necessary upgrades for Jomo Kenyatta International Airport (JKIA), East Africa’s largest aviation hub. They asserted that the proposed 30-year lease was financially unsustainable, posed a significant fiscal risk, and did not offer a fair return on investment for taxpayers.
Further fueling the controversy, the Kenya Aviation Workers Union voiced concerns about potential job losses and the introduction of non-Kenyan workers. The union threatened to launch a strike if the deal went through.
The High Court, recognizing the gravity of the matter, granted a stay order prohibiting the implementation of the Adani proposal. This means that no action can be taken on the lease agreement until the court concludes its judicial review.
The Adani Group, known for its global infrastructure projects, has yet to issue a statement on the court’s decision. Meanwhile, a spokesperson for the Kenya Airports Authority (KAA) declined to comment on the legal proceedings.
The Kenyan government has previously stated that JKIA is operating at maximum capacity and needs modernization, but it has also maintained that the airport is not for sale. The government has emphasized that the proposed deal was a potential public-private partnership intended to facilitate upgrades, but it has not finalized any decision on the matter. In July, the government announced it was reviewing Adani’s offer.
The court’s intervention creates a significant hurdle for the proposed deal, raising questions about the future of the partnership and the potential impact on Kenya’s aviation infrastructure. The legal battle is expected to continue as the High Court scrutinizes the proposed lease agreement.
