It’s official – Adani Group is pushing to take over the Jomo Kenyatta International Airport in Nairobi, but if you think this is good news for Kenya, think again! 🤨 While the Indian conglomerate promises big changes, what they’re really offering is a bad deal that could cost Kenyans big time – higher fees, fewer benefits, and long-term consequences for the country. Let’s break it down, because this deal smells like a disaster waiting to happen. 😡
💰 A One-Sided Cash Grab
Adani’s proposal sounds sweet on the surface: they want to run the airport for 30 years, redevelop it, and then hand it back. But hold up, because all the cash flows generated by the airport will go to Adani, not the Kenyan government. 🤯 In a fair deal, only the new terminal and runway should generate revenue for the private operator. But here, Adani gets EVERYTHING! The money from the existing terminal, the current operations? Yep, they get that too. Why should Kenyans hand over their airport’s profits to a foreign corporation? 😤
Worse still, Adani wants the government to pay for the developed assets at the end of the contract. Excuse me?! The government already owns those assets! That’s like someone selling you your own house. 🚩
💸 Higher Costs, Lower Benefits for Kenya
Here’s another thing that’ll get you boiling: Adani’s calculations show that fees for airlines using Jomo Kenyatta International Airport would skyrocket. 🛫 In fact, the airport will become more expensive than Bole International Airport in Addis Ababa, its main competitor in the region. For some routes, Nairobi’s fees would double those at Bole. So who ends up paying? You, the passengers. The higher costs for airlines will be passed on to travelers. ✈️💸
Let’s not forget: Adani wants an 18% internal rate of return on its investment. That’s massive! 🤯 For them to get those profits, the fees will go up, and Kenya will have to take on more risk while Adani’s profits are guaranteed.
📉 Optimistic Predictions & Fishy Assumptions
Adani’s projections assume unrealistic growth in passenger numbers – a 4.5% annual increase for the next 30 years. 📈 But let’s face it, that’s way too optimistic. No financial expert would take such numbers seriously without rigorous stress testing. Yet here we are, with Kenya poised to sign off on this ridiculous assumption. 🤦♂️
🏦 A Shady Tax Holiday for Adani?
Adani is also asking for a tax holiday. Yes, you read that right. They want to skip paying taxes while they make billions off the airport. 😡 While Kenya’s policies do allow tax holidays for some sectors, this doesn’t fit. Airports are profitable businesses, and Adani doesn’t need special treatment. This is yet another way Kenya stands to lose. 🧐
🚨 Land Grab Concerns
There’s also a major land question. Adani plans to develop additional facilities like offices and convention centers, but they expect Kenya Airports Authority to provide the land. Whoa, hold on. If the government owns the land, shouldn’t that be part of the deal’s cost-benefit analysis? What happens if Kenya has to buy the land? That’s money down the drain for a government already outsourcing renovations because of cash flow problems. 😠
Final Thoughts: 🚨 Kenya, Watch Out!
Kenya’s Public Private Partnerships Act was created to protect the country from shady deals like this, but it looks like this one is slipping through the cracks. Adani’s promises of “quick turnaround time” and “risk mitigation” are not convincing. Instead, Kenya would benefit more from an open tender that promotes competitive pricing and transparency. But that’s not happening here, and it’s clear who stands to gain – Adani. 😤
TL;DR Summary 📰
Adani Group’s proposal to redevelop Jomo Kenyatta International Airport is a bad deal for Kenya. They want to take over all the profits, raise airline fees, get a tax holiday, and even expect the government to buy back assets they already own! 😡 Plus, the deal is based on optimistic projections and shady assumptions, leaving Kenya to take all the risks. This is a deal that only benefits Adani while hurting Kenyan travelers and the economy. 🚨
