It was recently revealed that the Kenya Airports Authority (KAA) received a Ksh 242 billion offer from Adani Airport Holdings Limited to run Jomo Kenyatta International Airport (JKIA) for 30 years.
In a statement, KAA acting managing director Henry Ogoye revealed that Adani Airport Holdings Limited submitted an investment proposal under the Public Private Partnerships Act 2021.
According to KAA, Adani is an Indian group and a prominent airport operator looking to invest in a new passenger terminal building, a second runway, and the upgrading of current facilities at JKIA.
The uproar brought about by details of the deal forced President William Ruto to clarify reports that the government intends to sell the airport to a private investor.
According to Ruto, Kenya is only working on a Public-private Partnership (PPP) to upgrade the facility to give the airport a new look.
“The airport we have in Nairobi is made of canvas in the arrivals. This is a temporary structure we put up almost 7 years ago. Ethiopia, Rwanda have a brand-new airport. It is the reason why we need to work with investors to give us a new airport,” he said.
But what is Adani Airports Holdings Limited and what does theor portfolio look like, here is what WoK has managed to dog about the same.
Adani Airports Holdings
Adani Airports Holdings Limited (AAHL) is the airport business arm of the Adani Group, a major Indian conglomerate.
AAHL was incorporated in 2019 as a 100% subsidiary of Adani Enterprises Ltd, the flagship company of the Adani Group.
It currently manages and operates seven airports in India, Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram.
It also holds a 73% stake in Mumbai International Airport Ltd, which in turn owns 74% of Navi Mumbai International Airport Ltd.
With eight airports under its portfolio, AAHL is India’s largest airport infrastructure company, accounting for 25% of passenger footfalls and 33% of India’s air cargo traffic.
The company aims to redefine the city-airport relationship and offer best-in-class airport infrastructure to passengers.
AAHL proposed to lease and manage JKIA for 30 years under a Public-Private Partnership (PPP) model.
The deal is expected to generate over KSh 6 billion in revenue for the Kenyan government in the first year of operation.
AAHL is owned by the Adani Group, a major Indian multinational conglomerate whose chairman is Gautam Adani.
AAHL operates as a 100% subsidiary of Adani Enterprises Ltd, the flagship company of the group.