President William Ruto faced a major setback as attempts to dissuade airport workers from striking over the controversial Ksh246 billion Jomo Kenyatta International Airport (JKIA)-Adani deal fell flat.....CLICK HERE TO READ THE FULL ARTICLE>>>
A tense five-hour meeting at State House, held on Monday evening, saw the President and top government officials grappling with the resolute stance of the Kenya Aviation Workers Union (KAWU).
Sources close to the union revealed to Kenyans.co.ke that the workers demanded full transparency on the JKIA-Adani deal, including the Adani Public Initiation Proposal (PIP) assessment report and minutes from negotiations between the Kenya Airports Authority (KAA) and Adani Holdings Limited.
Without these details, the workers are set to down their tools on Sunday, September 1, potentially plunging the aviation sector into chaos.
Why it matters:
While no one argues the upgrading of the airport opened in 1958 is unnecessary, some of the terms of the deal have left workers and Kenyans alike in uproar. The Adani Group plans to lease Jomo Kenyatta International Airport, which generates Ksh49.063 billion in annual revenue, according to KRA data for 30 years and have an 18 per cent equity for perpetuity.
The proposal includes constructing and refurbishing terminal buildings, improving taxiways, and potentially building a new runway. These projects would be funded through airport revenue, increased fees, and private investments, with Adani receiving an 18 per cent equity stake after 30 years.
Under the proposal, Adani would pay the government an annual concession fee of $50 million (Ksh6.4 billion), which would rise by 10 per cent every five years. This increase in fees is expected to be passed on to airport users, leading to higher ticket prices.
Adani also suggests that Kenya Airports Authority (KAA) should adjust other airport charges based on its assessments. The proposal outlines that aeronautical fees and charges will be determined within an agreed framework, covering 100 per cent of aeronautical business, car parking, and a portion of earnings before interest and taxes.
Dig deeper:
According to a source close to Kenya Aviation Workers Union (KAWU) Secretary General Moss Ndiema, the government has pledged to release the requested documents today, Thursday, August 29. The release of these documents is critical to the government’s efforts to prevent the strike.
The workers intend to thoroughly examine the documents before issuing their stance on the proposed deal, our source revealed.
The meeting, chaired by President Ruto and attended by key figures such as Transport Cabinet Secretary Davis Chirchir and Labour Cabinet Secretary Alfred Mutua, was an effort to avert the impending strike.
Despite the government’s promises to release the requested documents by Thursday, August 29, union leaders remained unconvinced, leaving the strike threat looming large.
President Ruto urged the union not to rush to judgment without understanding the full scope of the deal, which he argued would benefit the country.
However, the workers were unyielding, demanding clarity on why Adani Holdings was chosen for the airport’s expansion project, the source told Kenyans.co.ke that the union believes JKIA has enough liquidity to build any new runway and make any necessary refurbishments.
In response to the escalating tensions, President Ruto directed Chirchir to provide the union with detailed information on the project and the terms of Adani Holdings Limited’s proposal. Yet, this assurance did little to quell the workers’ concerns.
The union’s fears extend beyond job security. Leaders argue that leasing the international airport to Adani could impose additional tax burdens on Kenyans through increased airport charges, ultimately raising the cost of air travel.
What the government says:
On Wednesday, National Treasury PS Dr. Chris Kiptoo confirmed to the National Assembly Committee on Public Debt and Privatisation that a review of Adani Airports Holding Limited’s proposal was ongoing.
He assured the Committee that a comprehensive submission would be made once the review was completed…CONTINUE READING>>
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