Kenyan High Court Suspends $1.85 Bn Deal With Adani

A Kenyan High Court has suspended a USD 1.85 billion agreement between the government and India’s Adani Airport Holdings. The deal, which would have granted Adani the right to operate Nairobi’s Jomo Kenyatta International Airport (JKIA) for 30 years, has been halted until further rulings are made.

According to a Bloomberg report, the Kenya Human Rights Commission and the Law Society of Kenya filed a legal challenge, arguing that leasing the strategic and profitable JKIA to a private entity is unconstitutional. The petition states, “Leasing JKIA is irrational and violates principles of good governance, accountability, transparency, and prudent use of public money.”

Faith Odhiambo, president of the Law Society of Kenya, expressed concerns that the deal is "unaffordable, threatens job losses, and disproportionately exposes the public to fiscal risk." The plaintiffs argue that Kenya could raise funds to expand JKIA without resorting to a long-term lease.

The Kenyan government, however, defends the deal, citing the urgent need for upgrades at JKIA due to capacity constraints. Kenya Airports Authority’s Acting Managing Director, Henry Ogoye, stressed that the deal would undergo thorough reviews to ensure compliance with public-private partnership laws.

Adani’s proposal includes a USD 750 million investment by 2029 for a new terminal and taxiway, alongside additional upgrades worth USD 92 million by 2035. However, the deal has faced strong opposition from transport workers and political parties in Kenya and India.

This venture marks Adani’s first airport operation outside India, where it currently manages over six airports. Adani also aims to list its airport business on stock exchanges by fiscal year 2028.

(With Bloomberg inputs)