The National Assembly investments committee has ordered the Kenya Airports Authority (KAA) to suspend all further engagements with Adani Group until it conducts a forensic audit.
- The Public Investments Committee on Commercial Affairs & Energy will convene in 14 days to look into the special audit report from the Office of the Auditor General on the matter to ensure accountability and transparency in handling the project.
- The Committee outlined several key areas for the audit that include examination of the procurement process for Adani, Assessment of the estimates and scope of the Adani project, Evaluation of whether the proposed Investment Plan (PIP) is the most effective way to utilize public resources.
- Members also outlined what they called critical areas of clarification including the future of KAA staff following Adani’s engagement and also understanding how private management of KAA will collaborate with the national airline and other airport operators.
“This Committee cannot avoid a special audit. There is a high level of distrust in this country. As implementers of government policy, you must recognize this reality. If you continue down this path, JKIA will suffer,” Chairman of the committee David Pkosing said.
Pkosing emphasized the importance of public involvement as stipulated by the constitution of Kenya 2010, saying that Kenyans are clever and privy to any matter that concerns them.
“We must not jeopardize our country with projects that raise concerns over public participation. How can Kenyans trust a report concluded in just one week?” he asked.
Inside Adani Group’s controversial US$1.84 billion JKIA proposal.
KAA Faces the Heat
KAA’s Acting Chief Executive Officer, Henry Ogoye, faced tough questions from the Committee about how Adani secured the tender.
He explained that the KAA infrastructure is outdated and referenced two feasibility studies commissioned by the government in 2021 and delivered in December 2022. One of the feasibility study focused on the National Aviation Policy and the other on a Medium-Term Investment Plan.
“Due to the high-level nature of the initial studies, a detailed feasibility study on JKIA was commissioned, which was completed on February 16, 2024. Adani Airport Holdings of India subsequently submitted a PIP, which was evaluated and approved by the committee, leading to negotiations that began on June 4,” Ogoye told the committee.
Ogoye stated that the entire process has been caught with legal requirements saying that he as KAA accounting officer has not signed any agreements with Adani so far, as there are currently three lawsuits halting the process.
On Monday, Kisii Senator Richard Onyonka introduced new evidence, presenting letters from three companies that expressed interest in the Kenya Airports Authority (KAA) but were reportedly overlooked. Onyonka contended that KAA insisted only Adani had shown interest and that their proposal was the only one processed.
