Kenya’s High Court has temporarily halted a contentious request by Adani Enterprises, a part of the Adani Group led by Gautam Adani, India’s second wealthiest man. The stalled agreement is for a 30-year lease to manage and expand Jomo Kenyatta International Airport (JKIA) in Nairobi, East Africa’s major aviation hub.
Civil society groups have expressed worries about the $1.85 billion agreement’s budgetary feasibility and impact on Kenyan workers. The Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) filed a combined application asking the court to block the agreement.
According to court filings, the LSK and KHRC contended that Kenya could raise the monies required to renovate JKIA without involving foreign organizations. They emphasized the risks involved with the transaction, such as potential job losses and the weight of long-term financial obligations on taxpayers.
LSK President Faith Odhiambo affirmed the court’s decision to allow for a judicial review of the proposed lease. “The court has issued a stay order prohibiting any action on the Adani proposal for JKIA until the case is resolved,” Odhiambo told Reuters. Both Adani Group and Kenya Airports Authority have declined to comment, citing the ongoing legal proceedings.
This legal action comes after Adani Enterprises established Airports Infrastructure PLC (AIP), a new subsidiary tasked with growing the company’s presence in Kenya’s airport industry. The decision is consistent with Adani Group’s overall growth strategy, which includes a diverse portfolio of power, gas, energy, port, and renewable energy projects.
Gautam Adani, whose net wealth is estimated to be $100 billion, continues to drive the company’s expansion across Africa. In addition to the Kenyan initiative, the Adani Group has signed a 30-year concession agreement with the Tanzania Ports Authority to handle Container Terminal 2 at Dar es Salaam Port, and has pledged $1.22 billion to improve Kenya’s power infrastructure in collaboration with Africa50.
The suspension of the JKIA project calls into question the Adani Group’s bigger plans in East Africa, where the conglomerate has made significant investments in logistics, energy, and infrastructure. Adani’s rising footprint demonstrates its determination to establish a dominant position in Africa’s fast changing infrastructure landscape, while legal procedures in Kenya represent a serious setback in its goals.