The High Court has issued orders prohibiting the implementation of the proposal to lease Jomo Kenyatta International Airport (JKIA) to Adani Airport Holdings Limited.
Justice John Chigiti also certified the matter as urgent and granted the applicants leave to apply for several judicial review orders.
“The application is hereby certified as urgent and the same is admitted for hearing during the court recess,” the judge ruled.
Under a certificate of urgency, the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) moved to court seeking to quash the deal between Adani and JKIA.
Through lawyer Dudley Ochiel, the applicants told the court that they had learnt from a whistleblower about the plans to lease JKIA to the Indian conglomerate for 30 years in exchange for USD 1.85 billion (Sh 238 billion) for expansion.
The applicants assert that Kenya can independently raise the money needed to expand JKIA without leasing it for 30 years.
In addition, the court heard that the proposal is unaffordable, threatens job losses, exposes the public disproportionately to fiscal risk, and offers no value for money to the taxpayer.
“Leasing the strategic and profitable JKIA to a private entity is irrational under Article 47 of the Constitution and violates the principles of good governance, accountability, transparency, and prudent and responsible use of public money under Articles 10 and 201,” Ochiel submitted.
The court heard the Kenya Airports Authority (KAA) did not conduct due diligence Under Section 41 of the PPPA before commencing an evaluation of a privately initiated proposal.
According to the applicants, had KAA conducted the section 41 due diligence before commencing evaluating the Adani proposal, it would have learned that Adani’s corporate and governance history is riddled with investigations for corruption, bribery, and human rights abuses worldwide.
“For example, in 2011, the Parliamentary Ombudsman of the Indian State of Karnataka investigated Adani for corruption, concerning the illegal export of 7.7 million tons of iron ore,” Ochiel submitted.
Furthermore, at the end of these 30 years, however, Adani would, in perpetuity, retain an 18% equity stake in the aeronautical business at JKIA.
“Thus, after 30 years, Adani would be entitled to an 18% concession fee starting at 6 billion Kenya Shillings and increasing by 10% every five years forever,” he added.
Meanwhile, the Adani proposal forbids KAA from building a competing facility (meaning any airport or airfield within a 150-kilometre radius of JKIA) for 30 years.
