A Kenyan High Court has suspended a $1.85 billion deal between the government and Indian billionaire Gautam Adani’s Adani Airport Holdings Ltd.
The agreement would have granted Adani a 30-year lease to operate Nairobi’s Jomo Kenyatta International Airport (JKIA).
The court’s order prevents any implementation of the lease until further judicial review.
The Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) filed a joint application, arguing that the country can raise the $1.85 billion required for the airport’s upgrade independently.
The groups expressed concerns over the financial risks, potential job losses, and lack of value for taxpayers associated with the lease, according to court documents published by KHRC.
The court granted permission for a judicial review to assess the legality and merits of the deal.
LSK President Faith Odhiambo announced on social media that the court had issued a stay, halting any implementation of the Adani proposal until the court case concludes.
What they said
They stated in their filings, “Leasing the strategic and profitable JKIA to a private entity is irrational” and violates the constitutional principles of “good governance, accountability, transparency, and prudent and responsible use of public money.”
The proposed lease has faced significant opposition, particularly from the Kenya Aviation Workers Union, which warned of potential job cuts and the introduction of non-Kenyan workers. The union had threatened to strike in protest against the agreement.
The Kenyan government, while acknowledging the need to modernise JKIA due to capacity constraints, has maintained that the airport is not for sale.
The administration described the potential lease as part of a public-private partnership and stated that Adani’s offer was under review.
In July, officials reassured the public that any deal would include safeguards to protect Kenya’s national interests.
The court’s ruling has temporarily alleviated concerns among critics of the deal, as the country awaits further legal developments and a resolution to the contentious airport lease proposal.
What to know
- Gautam Adani, with a net worth of $81.4 billion according to Forbes, is the chairman of the Adani Group, a conglomerate with $32 billion in annual revenue. The group’s interests span ports, airports, power generation, and green energy.
- Founded in 1988 as a commodities trading firm, Adani Group has grown through acquisitions and support from Indian Prime Minister Narendra Modi. Adani is India’s largest airport operator and controls Mundra Port, the country’s largest port, in Gujarat.
- Despite facing accusations of financial fraud and stock market manipulation from Hindenburg Research in January 2023, Adani Group has denied any wrongdoing and saw its shares recover after a favorable Supreme Court ruling.
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