Nairobi, 9th October 2024 — The Kenya Association of Air Operators (KAAO) has officially raised concerns regarding the proposed concession of Jomo Kenyatta International Airport (JKIA), urging for a review of the process. The KAAO Board convened on 4th October 2024 to deliberate on this issue, concluding that the concession, as currently structured, is flawed and requires significant revision.
The Board highlighted that the current concession process lacks competitiveness and transparency, which are essential for handling such a vital strategic asset. Specifically, they objected to the one-bidder approach and raised questions about the credibility of the proposed partner, Adani Airports Holdings Limited (AAHL). They argued that a multi-bidder process in line with the Public-Private Partnership (PPP) Act would ensure a fairer and more thorough evaluation of potential partners.
Central to the KAAO’s concerns is the absence of a clear long-term vision for JKIA, a key aviation hub in the region. They emphasized the need for the process to be informed by Kenya’s National Aviation Policy and a fully developed JKIA master plan. Furthermore, the KAAO noted that a proper feasibility study, engaging all stakeholders including operators, users, and the public, has not been conducted. They believe this oversight limits the value that could be extracted from the concession, both for the airport and the broader aviation ecosystem.
The KAAO Board advocates for a return to the drawing board, where a comprehensive and collaborative approach can be developed for JKIA’s future. This should prioritize critical infrastructural developments like the construction of a second runway and terminal expansions, and allow all stakeholders an opportunity to contribute to the decision-making process. The Board stressed that this inclusive strategy is essential for maintaining JKIA’s competitive edge in the region.
Furthermore, the KAAO expressed its disappointment with the lack of upfront engagement with stakeholders throughout the development of the concession proposal. This exclusion, they argued, undermines the credibility of the process and weakens trust in the outcome.
The Board has submitted a detailed memorandum outlining their concerns and recommendations to the Kenya Airports Authority (KAA). This memorandum is based on documents reviewed after a stakeholder briefing on 29th August 2024, which included the Head of Terms Agreement (Version 13th August 2024), AAHL’s feasibility report, and their privately initiated proposal. However, the absence of a financial model in these documents has significantly hindered KAAO’s ability to assess the overall feasibility of the concession, further fueling concerns about the project’s sustainability.
In conclusion, the KAAO is calling for a halt to the current concession process until a more transparent, inclusive, and competitive bidding process is implemented, one that aligns with Kenya’s long-term aviation strategy and delivers the best possible value for all stakeholders.
