Indian firm Adani Group has disclosed that its proposal to the Kenya Airports Authority (KAA) was approved in just 17 days for the feasibility study phase, as revealed by Kisii Senator Richard Onyonka.
A feasibility study assesses the practicality of a project, evaluating whether the project plan could be successful.
According to Senator Onyonka, members of the KAA board questioned how two weeks could be sufficient for a feasibility study of such magnitude.
Onyonka made these remarks during a Senate Roads and Transportation Committee session where Cabinet Secretary for Transport, Davis Chirchir, was being questioned.
Documents presented to the Senate Roads and Transportation Committee showed that the government has begun a due diligence process to evaluate Adani Limited’s technical and financial capacity, despite the Cabinet Secretary stating that no final deal has been signed.
During the committee session, Onyonka highlighted boardroom disagreements among KAA members regarding the 30-year concession deal granted to Adani.
He raised concerns about the speed of the feasibility study and the interests of some government officials in the deal.
“People were suggesting that our airport, valued at 1.2 trillion shillings, could be leased to someone for just 136 billion shillings over 35 years. Did it occur to you, Waziri, that some government individuals might have an interest in this deal?” Onyonka questioned.
In response, the Cabinet Secretary defended the process, stating that much of the due diligence was conducted remotely and based on previous case studies, which contributed to the shorter time frame.
However, Chirchir’s explanation did not fully satisfy the committee. He clarified that while a "Head of Terms" agreement had been reached, outlining key negotiation points, no final concession agreement had been signed and the agreement remains non-binding.
Chirchir stressed, “We have not signed anything yet. We are currently engaged in stakeholder consultations and due diligence, which will guide the drafting of the concession agreement.”
Legislators, including Narok Senator Ledama Ole Kina, Nairobi Senator Edwin Sifuna, and Kisii Senator Richard Onyonka, continued to press Chirchir, accusing influential government figures of favouring Adani in securing the 30-year lease for the airport.
Adani JKIA Proposal was Approved Within 17 Days