JKIA-ADANI: Indian Mogul Set For Takeover Despite Outrage From Kenyans
Adani Enterprises’ planned takeover of Kenya’s largest international airport, JKIA, continues to move forward.
The Indian firm is set to take over the regional hub’s operations and management and has established a Kenyan subsidiary in preparation for the November takeover.
Adani has now incorporated a local firm known as Airports Infrastructure PLC in filings with the National Stock Exchange of India.
According to their documents, the new subsidiary will take over, operate, maintain, develop, design, build, upgrade, modernise, and manage the airports.
This indicates that the transaction is already on track for takeover.
With the deal shrouded in secrecy, the Kenya Airport Workers Union (KAWU) is up in arms about the uncertainty of their jobs.
We have rejected fishy and opaque dealings. Some individuals are traveling to India on 3/9/24 to auction JKIA to Adani, wait for their travel itinerary. If our demands are not met the industrial will be activated. Wajinga waliisha Kenya. pic.twitter.com/9uEqZYz0Yz
— Kenya Aviation Workers Union (@Kawu_KE) September 2, 2024
On Monday, airport workers protested at the JKIA, opposing the public-private partnership that would allow Adani Group Holdings to take over operations at one of East Africa’s busiest airports.
In a letter to Kenya Airports Authority, copied to Transport Cabinet Secretary Davis Chirchir, KAWU requests that all engagements with the Indian-based firm be suspended immediately.
The Adani-JKIA takeover proposal, which is causing concern, states that the government will grant Adani a 30-year concession to finance, build, and operate the project, after which the company will receive an equity stake in perpetuity.
In addition, a concession agreement seeks an 18% annual return on investment.
To sweeten the deal, Adani proposes investing Ksh.97 billion in constructing a new terminal building, associated apron, taxiway system, and two rapid exit taxiways.
The airport workers claim the takeover is rushed, with a team of 16 from KAA leaving for India on Tuesday for due diligence.
Workers are also concerned about potential job losses caused by new management, as well as a review of existing contracts that includes uncertainty in projected salary and allowances reviews.
According to the contract, certain employees will be transferred to Adani during the transition period, with KAA expected to retain or transfer the remaining employees to another employer.
JKIA-ADANI: Indian Mogul Set For Takeover Despite Outrage From Kenyans
