In preparation for Adani Enterprises Limited’s proposed takeover of Jomo Kenyatta International Airport, a new company has been registered as the firm’s Kenyan subsidiary.
The company, known as Airports Infrastructure PLC (AIP), is entirely owned by Global Airports Operator L.L.C. (GAO), a subsidiary of Adani Enterprises based in Abu Dhabi.
Documents shared online about its incorporation reveal that the subsidiary was officially registered in Kenya on August 30, 2024, under the Kenyan Companies Act, 2015.
“We would like to inform that Global Airports Operator LLC., Abu Dhabi, a step-down subsidiary of the Company has incorporated a wholly owned subsidiary namely “Airports Infrastructure PLC” in Kenya on August 30, 2024. The information of the same is received by the Company on August 30, 2024 at 8:10 pm,” a letter from the Adani Entreprises Limited to the National Stock Exchange of India read.
Airports Infrastructure PLC will be tasked with the management, operation, development, and enhancement of airport facilities in Kenya.
The subsidiary has a share capital of KShs 6.75 million, divided into 6,750 equity shares valued at KShs 1,000 each. Since business operations have not yet commenced, it has yet to generate any turnover. GAO, a subsidiary of Adani Enterprises, will hold 100% of AIP’s share capital, securing full control over the new venture.
The registration of the new company has intensified public outrage, as the proposed KShs 242 billion ($1.85 billion) deal between the Kenyan government and the Indian conglomerate to manage and expand JKIA has already faced widespread opposition.
As part of the proposal, Adani would invest in upgrading JKIA’s infrastructure, which includes constructing a second runway and a new terminal by 2029.
In return, Adani would oversee all operations at JKIA for 30 years, effectively restricting the development of other significant Kenyan airports by both local and international developers without their approval.
Airport workers have raised alarm about the deal, warning it could result in job losses, reduced benefits, and worsening working conditions. This has led to calls for a strike until their concerns are addressed by the government.
On Monday, September 2, the Kenya Aviation Workers Union (KAWU) followed through on their strike threat, causing service disruptions at JKIA. Passengers faced long delays and were left stranded or experienced lengthy check-in and check-out processes at various terminals.
The union is demanding full transparency regarding the Adani deal, including the release of the Public Initiation Proposal (PIP) assessment report and meeting minutes between KAA and Adani. They have also called for the resignation of KAA officials if these demands are not met.
The government is taking steps to prevent the strike, with President William Ruto meeting with union leaders and government officials on August 26 to address the workers’ concerns and avoid disruptions.
The government has defended the Adani deal, arguing that it is essential for refurbishing JKIA, which frequently experiences infrastructure problems such as power outages and leaking roofs.
President Ruto has instructed Transport CS Davis Chirchir to share the details of the expansion project and Adani’s proposal with the union, but the workers have still not received the documents.
This could lead to intensified industrial action, further paralyzing operations at JKIA, which is already grappling with maintenance challenges, financial constraints, and operational inefficiencies.
