“Where we are as a country, we have a very thin and tight fiscal space. Modernization is crucial, but we cannot raise the necessary funds through the budget. PPP is the way to go, and this time, we’ll ensure the process is open, transparent, and includes public participation,”-Treasury Principal Secretary Chris Kiptoo
The government is urgently seeking a new investor to fund the modernization and expansion of Jomo Kenyatta International Airport (JKIA), following President William Ruto’s cancellation of the controversial Adani deal. The project, estimated to cost Ksh 260 billion, is deemed critical as JKIA, originally designed for 7 million passengers in 1978, now serves over 9 million passengers, underscoring the need for upgrades to maintain its status as a regional hub.
Treasury Principal Secretary Chris Kiptoo, addressing the Public Accounts Committee (PAC) on audit queries, emphasized that the government lacks the fiscal capacity to fund such projects independently. He advocated for Public-Private Partnerships (PPP) as the only viable path forward. “Where we are as a country, we have a very thin and tight fiscal space. Modernization is crucial, but we cannot raise the necessary funds through the budget. PPP is the way to go, and this time, we’ll ensure the process is open, transparent, and includes public participation,” Kiptoo assured the MPs. Kiptoo also revealed that a competitive bidding process would be employed to identify capable investors beyond the Adani Group.
President Ruto’s Anti-Corruption Stance
The move follows President Ruto’s cancellation of two major infrastructure projects, including JKIA’s expansion and the KETRACO energy transmission project, citing integrity concerns. During his State of the Nation address, the president reiterated his administration’s commitment to combating corruption, stating:
“Of the many difficult assignments I have undertaken, this fight against corruption is one I now take on with resolve. In the face of credible information on corruption, I will not hesitate to take decisive action.”
Ruto directed the Ministries of Transport and Energy to terminate the Adani-linked procurement processes, reinforcing his administration’s commitment to transparency and accountability.
MPs Demand Accountability in New Deal Parliamentary leaders echoed the need for transparency in future deals. Funyula MP Wilberforce Oundo, acting as PAC chairperson, urged the government to ensure competitive and accountable procedures for the new agreement. “Kenyans are for PPP, but they demand transparency and accountability. Let us conduct this process with utmost integrity,” Oundo stated. Bura MP Kuno Yakub supported this sentiment, calling for thorough feasibility studies, background checks, and public participation to avoid a repeat of the Adani controversy.
The challenges in Kenya’s PPP framework were highlighted in the 3rd Annual Report on the State of Public-Private Partnerships for FY 2023/24. The report noted setbacks, including the termination of two high-value projects—the Nairobi-Nakuru Mau Summit Road and Road Annuity Lot 32—with a combined worth of Ksh 125.2 billion. Despite these challenges, the government aims to mobilize Ksh 70 billion in private sector investments for PPP projects in FY 2024/25.
As the government charts a new path for JKIA’s modernization, all eyes will be on the transparency and competitiveness of the new investor selection process. Will the lessons from the Adani controversy pave the way for better governance in future mega-projects?
