Weeks after a High Court in Nairobi put on hold the planned lease of the Jomo Kenyatta International Airport (JKIA) to Adani Group, the government has unveiled a new strategy to fund the main airport’s upgrade.
While appearing before parliamentarians on Monday, Prime Cabinet Secretary Musalia Mudavadi revealed that the government would fund key government projects including the revamp of the country’s main airport using proceeds from the sale of a diaspora bond.
Mudavadi noted that the government had initiated plans to raise more funds for infrastructural development through the acquisition of loans from Kenyans living abroad.
“We can mobilize diaspora resources, to partner with other private sector resources and fund this piece of infrastructure,” Mudavadi told legislators.
Jomo Kenyatta International Airport in Nairobi.
Photo
Trip Advisor
Issuance of diaspora bonds was revived this month after being put on hold for over six months following concerns on whether Kenyans living in the diaspora were able to loan the State.
Meanwhile, the CS in his explanation, said he regretted the country’s decision to abandon the rejuvenation of JKIA while other airports across the continent were being expanded and upgraded.
“The truth is that if you went to West Africa today, whether you are landing in Ghana, Togo or you went to Addis or Rwanda, their airports have overtaken Jomo Kenyatta International Airport,” the CS stated.
Mudavadi’s announcement comes barely three weeks after the High Court in Nairobi temporarily halted the planned lease of JKIA to Adani Group.
The decision followed a petition filed by the Law Society of Kenya that sought a court order to compel the government to suspend its planned lease of the country’s airport.
In March this year, the Indian conglomerate sent a proposal to Kenya to take over the operations of JKIA in what it referenced as plans to revamp the airport.
Three months later the government approved the proposal, granting Adani the headstart to take over JKIA for renovation works.
The Public-Private deal which would grant Adani Limited thirty years to operate and rehabilitate JKIA sparked backlash from Kenyans categorically aviation workers who protested the move.
India’s Adani Group office
Photo
Nikkei Asia
