The Jomo Kenyatta International Airport (JKIA) which is currently the subject of a debate over a proposed lease to Indian firm Adani Group-made a total revenue of Sh19 billion in the last financial year, it has emerged.
The revenue was generated from various streams which include both aeronautical and non-aeronautical.
Landing, parking, and air passenger service charges accounted for the highest earning of Sh14 billion while Sh5 billion accrued from non-aeronautical activities including car parking, duty-free, advertising, cargo, and general retail.
The documents tabled by Transport Cabinet Secretary Davis Chirchir in Parliament further show that the facility is valued at Sh1.1 trillion.
This is per the Airports valuation report from the public works.
Mombasa’s Moi International Airport is worth Sh23.7 billion, Eldoret (Sh10.8 billion), and Kisumu (Sh9.9 billion).
The value encompasses land worth Sh937 billion, buildings (Sh20 billion), pavement (Sh145 billion), and other infrastructure (Sh4 billion).
Adani Group has proposed to take over the management of the airport for 30 years.
As part of its wider plans to redevelop the facility, it plans to refurbish the existing terminal and construct a 23-million capacity new passenger terminal building.
According to Chirchir who appeared before a Senate committee to respond to questions, the investor also intends to put up access roads within the perimeter of the concession, parking garage, aprons, rapid exit taxiways, and extension of existing parallel taxiways to runway 24 threshold.
Other works include the repair of pavement, construction of a second runway, and support infrastructure which is utilities.
He did not, however, provide the designs for the proposed projects.
“Reference designs, sketches, and maps will only be available once the development area is marked post the signing of the concession agreement,” said Chirchir.
In its proposal, Adani further seeks 30 acres of land at JKIA for real estate and commercial developments.
According to the CS, the request has been excluded from the concession agreement and will be handled under the Kenya Airports Authority on concessions and leases.
As to the fate of the employees working at the facility, the CS pointed out that the concessionaire (Adani) will make an offer to them with equal or better terms to their existing terms of employment.
“Joining Adani will be voluntary for the employees. They will have the option to assent to Adani to stay with KAA or to take a voluntary exit package,” he explained.
There will be a three-year interim management period during which the facility will be jointly managed by KAA and the concessionaire for hand-holding.
