The recent High Court ruling that deemed the Privatisation Act 2023 unconstitutional will not impact the ongoing takeover of Jomo Kenyatta International Airport (JKIA) by Adani Holdings.
The deal remains secure as it operates under a Public-Private Partnership (PPP) framework, which is not governed by the Privatisation Act.
This PPP model allows private investors to fund government projects in exchange for a share of the revenue generated over an agreed time frame.
In the case of JKIA, the 30-year lease agreement with Adani Holdings will follow this structure.
Once the lease period ends, control of the airport will revert to the state, distinguishing it from outright privatisation, where assets are fully owned by private entities.
Although the National Treasury and Economic Planning Ministry had identified 11 other state entities for privatisation under the now-invalidated Act such as the Kenyatta International Convention Centre (KICC), Kenya Pipeline Company (KPC), and Kenya Seed Company Limited (KSC) the JKIA deal is excluded from this initiative because of its PPP classification.
The proposed privatisation of these state-owned enterprises was aimed at generating revenue and easing the financial burden on the government.
The full list of targeted entities included New Kenya Cooperative Creameries (KCC), National Oil Corporation of Kenya (NOCK), Kenya Literature Bureau (KLB), and Mwea Rice Mills Ltd (MRM), among others.
Meanwhile, the JKIA takeover, valued at $1.85 billion (approximately Ksh.239 billion), faces significant public backlash.
In response to the ongoing controversy, Parliament has instructed the Office of the Auditor General to carry out a special audit of the deal and deliver findings within 14 days.
The Public Investment and Commercial Affairs Committee is also calling for a comprehensive investigation into the details of the privately initiated proposal to enhance transparency.
As the JKIA-Adani transaction moves forward under the PPP framework, all eyes will be on the parliamentary audit’s findings, which could shed light on the deal’s transparency and its long-term implications.
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