KAAO supports the cancellation of the JKIA concession proposal

The Kenya Association of Air Operators (KAAO) has praised President William Ruto's directive to terminate the Privately Initiated Proposal (PIP) for the concession of Jomo Kenyatta International Airport (JKIA). In a recent press statement, the association stated, "This decisive action echoes our long-standing position that the proposal, as structured, posed significant challenges to transparency, inclusivity, and the strategic future of JKIA."

Last week, President Ruto cancelled a 30-year lease proposal by the Adani Group for (JKIA), citing concerns about corruption and transparency violations. This decision follows a US Department of Justice indictment against Adani Group Chairman Gautam Adani and his associates for charges including bribery and fraud. The President directed the Transport and Energy Ministries to terminate procurement processes with Adani and seek alternative partners for airport and energy projects, which include a $736 million power transmission line agreement with Adani Energy Solutions.

In the recent release, KAAO edexpressed its concerns about the proposed concessions for JKIA, stating it could not support the current single-bidder approach due to significant risks. They emphasised the need for urgent investments to maintain JKIA's status as a regional hub and a crucial contributor to Kenya's economy. However, KAAO insisted that modernisation efforts adhere to an open, competitive bidding process and involve robust stakeholder engagement.

The association highlighted the necessity of conducting a comprehensive feasibility study to build a strong business case, focusing on upgrades like a second runway, expanded terminal capacity, and related facilities. These initiatives should align with the goals set out in the approved National Aviation Policy.

Furthermore, KAAO referenced global best practices in airport concessions, particularly the International Air Transport Association's (IATA) guidance, co-authored with Deloitte, as a helpful framework. The organisation reaffirmed its commitment to a strategic vision for JKIA that promotes sustainable growth, enhances infrastructure, and bolsters Kenya's competitiveness in regional and global aviation markets.