Kenya Aviation Workers Union (KAWU) addressing the media at JKIA on August 20, 2024.
Kenya’s airport workers have rejected the deal between the Jomo Kenyatta International Airport (JKIA) and Indian conglomerate Adani Group after analysing agreement documents regarding the deal.
The Kenya Aviation Workers Union (KAWU), which had agreed to call off their strike that paralysed airport operations on September 11 to read the document and make a verdict in 10 days, said they have since scrutinised it and concluded it was not in the best interest of union members or the Jomo Kenyatta International Airport (JKIA).
KAWU Secretary General Moss Ndiema told Nation. Africa that the union officials will be meeting with their government counterparts next week to state the agreed position after which they will announce the next course of action.
“As a union, we have gone through the documents that they provided us with and we state that they are bad. We do not want Adani to be in charge of our airport and we are going to make that clear to the government during our meeting next week,” Mr Ndiema told Nation. Africa on Friday, September 27.
The union officials had inked a return-to-work deal on September 11 with the government following an industrial strike that paralysed operations across different airports in the country.
The strike led to the loss of close to Sh80 million in revenue according to Kenya Airways Chief Executive Officer Allan Kilavuka.
The return to work formula gave a grace period of 10 days for the union officials to review the Privately Initiated Proposal (PIP) by Adani before making the decision.
The union officials are protesting over what they say are ‘unfair” conditions in the Adani deal that will see them lose their employment opportunities. They are also demanding the resignation of senior Kenya Airports Authority (KAA) for conflict of interest regarding the takeover.
Adani Group, a conglomerate with interests in energy, agribusiness, weapons as well as airport operations submitted its PIP plan in March 2024. According to the excerpts of the Adani PIP plan seen by Nation Africa, the firm proposes to pay a concession fee of $50 million per year to the government.
This amount, which is tied to the fees that the firm will charge airport users.
The lease period will also last for a period of 30 years from the commencement date if the proposal is accepted.
Rapid exits
During this period, Adani shall undertake the establishment of new Passenger Terminal Buildings (PTB), the refurbishment of existing PTBs, and enhancement of the airside pavement works including the establishment of new taxiways, rapid exits taxiways, aprons and construction of a second runway.
Adani also proposes that KAA be instructed to increase the other airport charges and fees based on the assessment that it will carry out.
“The Grantor shall within 90 days take effective steps for fixing the Airport Charge as proposed by the Concessionaire. Aeronautical fees and charges will be determined based on a framework to be agreed upon by the Parties and set out in Agreement. The base for determining airport charges are as follows: 100 per cent of aeronautical business, 100 per cent of car parking business and 30 percent of the earnings before interest and taxes,” reads an excerpt from the PIP plan.
The Indian firm is also expected to come up with a concession order on the access charges relating to aero cargo, fuel farm and ground handling. During the transition period from KAA to Adani, the employees will be retained as the Indian company works on new job offers for them.
Mr Ndiema dismissed the deal arguing that none of the employees was involved in the process and that they learned about the deal through social media.
“It does not matter whether it is leasing or selling. I have heard them say they are not selling they are leasing. The truth of the matter is that by the end of the 30 years, no one of these workers will be here. It is so unfortunate that the management of KAA has been silent about this,” Mr Ndiema said.
The proposed deal has also dragged to the courts with a total of three petitions filed so far seeking to stop the deal. The High Court has already issued orders prohibiting any agreements between KAA and Adani pending the hearing of a petition filed by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC).
Fiscal risk
Both institutions argued that the deal if effected will lead to massive job losses, was unaffordable and it would put the country at fiscal risk. They also argued that it did not offer taxpayers any value for money.
Activist Tony Gachoka and a group of lawyers have also filed a separate petition. Wiper Democratic Movement leader Kalonzo Musyoka has also filed a petition seeking to be enjoined in the case. A separate petition has also been filed by petition Mr Issack Lango Guyo who sought cancellation of the proposed deal on grounds that the process was unconstitutional and rushed.
While appearing before the Senate this week, National Treasury Cabinet Secretary John Mbadi said one of the conditions that the government has given before the deal is approved is the absorption of all the JKIA staff.
“The National Treasury cannot approve the project development agreement for the Jomo Kenyatta International Airport until the 22 conditions are met by Adani Holdings,” Mr Mbadi told senators.
“The process cannot proceed to a conclusion until all conditions are met by Adani Airports Holdings,” he added.
He also gave assurance that the employees would be on-boarded with fair terms.
But Mr Ndiema on Friday told Nation.Africa, that apart from employment there are many glaring issues in the deal that make it untenable and unacceptable.
“This is not only about employment. We are talking about the takeover of an international asset by a foreign company. The effects of the takeover will trickle down to the ordinary Kenyans in many ways and that is why we have rejected it,” Mr Ndiema said.
The government has, however, defended the deal insisting that it is focused on upgrading the airport to make it more competitive as regional rivals continued to upgrade.
The proposed takeover by India’s largest private airport operator sparked protests in Kenya when it was revealed in July, with the police blocking demonstrators who wanted to shut down the airport.
On Tuesday, September 24, the National Assembly called for the freezing of any activities regarding the takeover of the airport by Adani and ordered a special audit of the controversial proposal.
The Senate has also raised concerns about the deal.
