CS Mbadi Threatens Courts Over Adani-JKIA Takeover Petitions

CS Mbadi Threatens Courts Over Adani-JKIA Takeover Petitions

Treasury Chief Secretary John Mbadi has asked courts to proceed cautiously with petitions challenging the Adani Group’s proposed takeover of Jomo Kenyatta International Airport (JKIA) in order to maintain the country’s investor attractiveness.

Several petitions have been filed challenging the Indian conglomerate’s proposed 30-year ownership of the Sh1.1 trillion airport at a cost of $1.83 billion (Sh230 billion).

Petitioners include journalist Tony Gachoka, Mt Kenya Jurists, and the Kenya Human Rights Commission, who allege that the deal is riddled with illegalities.

Which include a lack of mandatory public participation, and have petitioned the courts to overturn the process.

CS @KeTreasury John Mbadi has told the @SenCommitteeKE on Roads, Transportation & Housing that Adani Airport Holdings Ltd submitted a Privately Initiated Proposal to KAA in line with the PPP Act, & paid a $50,000 appraisal fee as set in law.

Read More: https://t.co/lxmtpVN7FJ pic.twitter.com/6F3C0kygiz
— Senate of Kenya (@Senate_KE) September 24, 2024

On Tuesday, Mbadi appeared before the National Assembly’s Public Debt and Privatisation Committee, asking the courts to treat the with utmost care, lest they scare potential investors.

“Let it be concluded in a manner that is objective so that no party feels hurt. The processes need to be clear even if you are terminating so that any investor out there would not treat Kenya as a hostile ground for investment,” Mbadi said.

According to the CS, it is critical that Kenya gives the world the impression that it has effective and objective laws and legal frameworks in place.

“We have to be careful; if we do it in a way that would send signals that this is a country that does not support direct foreign investment, then we are running the risk of in the future not attracting investors,” he added.

“But that does not mean we don’t have to be careful about how we go about it.”

Adani Airports Holdings must meet 22 conditions, including the absorption of all Jomo Kenyatta International Airport staff before any deal can be approved, National Treasury Cabinet Secretary John Mbadi has said. via: @NationAfrica pic.twitter.com/Ts9NWd4fFU
— Mzalendo (@MzalendoWatch) September 24, 2024

Mbadi spoke on the same day that the Public Investments Committee on Commercial Affairs and Energy suspended further discussions about the Adani deal until a forensic audit of the entire process was completed.

“Adani… Not A Done Deal”

CS Mbadi has said that the controversial deal by Indian firm, Adani, to upgrade and expand JKIA is still in the negotiation stage. #NTVTonight @Ben_Kitili pic.twitter.com/X9fevgGzSg
— NTV Kenya (@ntvkenya) September 23, 2024

The committee directed the Kenya Airports Authority not to negotiate Adani’s airport upgrade proposal until the auditor general can determine how the Indian firm was brought on board.

They questioned the suitability of the Privately Initiated Investment Proposal for the airport upgrade and inquired whether it was the best available option.

“The question we seek information on is whether there is an alternative way to save people money instead of the PIIP route,” PIC chairman David Pkosing said.

MP David Pkosing to KAA: Do not do any further thing with Adani until this committee submits a report to Parliament by end of October. If you do it, you will carry that cross pic.twitter.com/fVXX3In4g4
— Citizen TV Kenya (@citizentvkenya) September 24, 2024

“It is the advice of the committee that you don’t do anything with Adani until this committee reports this matter to Parliament,” he added.

MP David Pkosing: It looks like KAA cannot guide itself… it seems Adani is the one guiding them pic.twitter.com/LKEfp7pcOU
— Citizen TV Kenya (@citizentvkenya) September 24, 2024

The committee warned KAA acting CEO Henry Ogoye that if he violated the directive, he would be held personally liable and that MPs have the final say.

“The House with the power to do these things is the National Assembly. We will do our work as a committee,” Pkosing said.

Meanwhile, Mbadi reassured KAA employees working at the JKIA that their jobs would be safe if the Adani deal went through.

The CS appeared before the Public Debt and Privatization Committee, along with Public Private Partnership Director General Christopher Kirigua.

He stated that their welfare is covered by the concession agreement between KAA and Adani Holdings.

“This is what it says: During the interim management period, JKIA employees will remain employed by the grantor,” he stated.

“The concessionaire [Adani] will make an offer to the existing employees on terms that are no less favourable to their existing terms of employment.”

Mbadi told MPs that the staff were taken through the deal after going on strike on September 11, expressing concerns about losing their jobs.

The airport workers’ strike ended after a day of chaos for passengers.

ALSO READ:

The Kenya Aviation Workers Union (KAWU) agreed to return to work after receiving assurances that the deal with Adani would not be completed without their approval.

Mbadi also dispelled the myth that the government is desperate to bring Adani on board to save the country from a debt crisis, claiming that the deal is insignificant in comparison to Kenya’s financial needs.

He stated that the government is expected to receive approximately Sh6.5 billion per year if the deal is approved.

“That money, when we receive it, I think it will not help us pay our debts. We may inject it into KAA to modernise other airports because KAA is also struggling,” he

“Much as we have the debt issues, this money may not help us solve much because this is a huge economy.”said.

CS Mbadi Threatens Courts Over Adani-JKIA Takeover Petitions