Kenyans are showing solidarity with the Kenya Aviation Workers Union (KAWU) as they intensify their planned protests to occupy JKIA over the Adani deal.
KAA workers maintained the peaceful #StopAdani demonstrations, paralysing operations at JKIA.
Lawyer Donald Kipkorir recommends charging and shooting those involved in the JKIA-ADANI GROUP negotiations for treason.
Nelson Amenya deserved more recognition for saving the nation by exposing the Adani-JKIA deal. If it weren’t for his whistleblowing, Kenya would have woken up one day with JKIA gone, according to Kipkorir.
For the first time in Kenyan history, there is no plane heading to JKIA. The airport is extremely quiet.
JKIA is the busiest airport in East Africa by passenger numbers and the busiest in cargo handling in Africa (2023). Mismanagement has brought it to its knees.
Inside Adani Deal
According to the agreement with Adani Airport Holdings Ltd., Adani must receive compensation for both losses and anticipated profits in the event of any disruptions brought on by court actions, parliamentary decisions, or protests.
International arbitration in London will resolve disputes, with hearings taking place in Mauritius.
Under Adani’s proposal, KAA employees may need to renegotiate their contracts, with potential job losses for some.
Under new terms and conditions, Adani will hire only a portion of the current workforce and seek to employ non-Kenyan workers.
Tax exemptions and financial arrangements:
The concessionaire is eligible for tax breaks on corporate income for any 10-year period within the first 15 years of the airport and CSD concessions.
The concessionaire will receive all financial matters, including revenues, expenses, insurance, and security deposits.
Adani is also seeking favourable tax policies, including exemptions from corporate tax for specific years.
Regarding the Air Passenger Service Charge Act.
The Air Passenger Service Charge Act sets a service charge of USD 50 for international flights and Sh600 for domestic flights.
The Kenya Airports Authority (KAA), the Kenya Civil Aviation Authority, and the Tourism Promotion Fund split the revenue from this charge (60% for international flights and 50% for domestic flights).
Adani’s proposal includes amending this Act to allow it to set charge amounts and retain the share usually allocated to KAA. The concessionaire will also be in charge of collecting these fees.
Adani Airport Holdings Ltd. will take control of all non-aeronautical assets at JKIA from the effective date.
The company will manage all airport operations and financial transactions.
Adani plans to set its own service charges and ensure an equity (IRR) of 18%, which is essential for the project’s success and profitability.
Adani plans to invest $1.85 billion in upgrading JKIA.
This investment aims to significantly boost revenue, projected to rise from $163 million in 2025 to $1.2 billion by 2054.
The proposal includes a new passenger terminal, a second runway, and refurbishing existing facilities, marking the first major overhaul of JKIA in 46 years.
Revenue Sources.
As the concessionaire for JKIA, Adani expects to earn revenue from:
- Aeronautical Charges:
- Landing fees
- parking fees
- boarding bridge charges
- passenger service charges.
Non-Aeronautical Sources:
- duty-free shops
- Food and beverage outlets
- Retail stores and vending machines
- Lounges
- Advertising and sponsorships
- Parking and transportation facilities
- Hotels and transit
