Tag: Kenya Airports Authority (KAA)

  • JKIA Under Siege: US Bars Kenya Aviation Boss Over Drug, Terror Links as Trump Tightens Narcotics Noose

    JKIA Under Siege: US Bars Kenya Aviation Boss Over Drug, Terror Links as Trump Tightens Narcotics Noose

    Visa denial of KAA chief exposes widening cocaine pipeline through Nairobi as Washington escalates war on cartels. Emergency Sunday meeting called as Sh3 billion tender scandal deepens crisis

    The dramatic denial of a United States visa to Kenya Airports Authority CEO Dr. Mohamud M. Gedi has thrust Jomo Kenyatta International Airport into the spotlight, exposing what American intelligence officials suspect is a compromised gateway in East Africa’s escalating narcotics war.

    Aviation and Aerospace Principal Secretary Teresia Mbaika moved with unusual urgency Sunday, summoning Gedi to her office on October 12, 2025, a weekend meeting that signals the gravity of the crisis engulfing Kenya’s flagship airport.

    The weekend summons, highly irregular in government protocol, has sparked speculation that Gedi may be forced out as authorities scramble to contain the diplomatic and security fallout.

    “There is panic as some officials fear this may trigger changes at KAA. We are waiting to see,” a source within the ministry revealed, confirming that Mbaika was shocked by revelations surrounding the visa denial.

    The refusal, issued under Section 221(g) of the Immigration and Nationality Act ahead of critical aviation security talks in Montreal, cited administrative processing but sources close to the matter point to graver concerns: suspected links to terrorism financing, procurement corruption, and facilitation of drug trafficking networks operating through Kenya’s flagship airport.

    The Sh3 Billion Question

    The visa denial comes as investigators examine suspicious procurement deals orchestrated under Gedi’s watch.

    The acting managing director has already awarded two major tenders valued at Sh3 billion to a company linked to a sitting governor, raising red flags about conflict of interest and possible kickback schemes.

    One contract alone, involving repairs at Wilson Airport, is valued at Sh1.5 billion.

    Critics describe these as “hipped development projects” designed to siphon public funds while delivering little actual infrastructure improvement.

    These procurement irregularities have fueled speculation that corruption at KAA extends beyond simple graft to potentially facilitating criminal enterprises that require blind eyes at strategic checkpoints. The overlap between financial malfeasance and security lapses presents a troubling picture of institutional compromise at the highest levels.

    A Pipeline Exposed

    The timing could not be more damning. Just weeks before Gedi’s visa application was rejected, 20 kilograms of cocaine traced back to JKIA were intercepted at London’s Heathrow Airport.

    KAA Managing Director and CEO Mohamud Gedi during a past event.
    KAA Managing Director and CEO Mohamud Gedi during a past event. PHOTO/@KenyaAirports/X

    A Kenyan suspect now faces prosecution in Britain, marking the latest seizure in a disturbing pattern that has transformed the airport into a critical node in the transatlantic cocaine trade.

    JKIA has increasingly featured in international drug busts that reveal sophisticated trafficking networks. In March 2025, Spanish authorities arrested two Kenyan nationals at Madrid-Barajas Airport carrying 15 kilograms of cocaine that originated from Nairobi. Investigators traced the shipment to handlers within JKIA’s cargo section.

    Last December, Italian police dismantled a smuggling ring in Milan that had moved an estimated 200 kilograms of cocaine through JKIA over an 18-month period, concealed in coffee shipments and safari tour packages.

    Three airport employees were arrested in Nairobi in connection with the operation.

    These incidents underscore what American and European drug enforcement agencies have privately warned Kenyan authorities about for years: JKIA’s security infrastructure has been penetrated by criminal syndicates, and corrupt insiders are allegedly facilitating the flow of South American cocaine destined for European markets.

    The implications for Kenya’s aviation standing are severe. The US Transportation Security Administration had scheduled the September meeting specifically to finalize the One Stop Security program, which would allow passengers transiting through JKIA to skip additional screening at American airports. That designation now hangs in the balance.

    Trump’s Expanded Drug War

    The visa denial aligns with President Donald Trump’s intensified campaign against international drug trafficking, which has expanded significantly since his inauguration in January 2025.

    The administration has not only maintained pressure on traditional targets like Venezuela but has also turned its attention to African transit routes.

    Trump’s Treasury Department recently sanctioned Venezuelan officials and entities linked to cocaine production, while the State Department has publicly called out African airports as emerging vulnerabilities in the global supply chain.

    Kenya, with its strategic position and direct flights to major Western cities, has become a priority concern.

    This represents a continuation of America’s long engagement in Kenya’s anti-narcotics efforts.

    In 2010, the US extradited suspected drug baron Ibrahim Akasha and three others who were later convicted in New York federal court.

    The Akasha brothers’ trial exposed a sprawling criminal empire that corrupted law enforcement and political figures across East Africa.

    The Akasha case demonstrated Washington’s willingness to pursue extradition and prosecution of Kenyan nationals involved in narcotics trafficking. Their convictions in 2018 sent shockwaves through Kenya’s criminal underworld and political elite, revealing the depth of drug money’s penetration into legitimate institutions.

    Naming Names

    Kenya’s Parliament has not shied from confronting the issue. In 2019, then Interior Cabinet Secretary Fred Matiang’i publicly named several individuals suspected of drug trafficking, though prosecutions rarely followed.

    MPs have repeatedly demanded investigations into how narcotics move through JKIA with apparent ease, pointing to what they describe as a protection racket involving airport officials, customs agents, and elements within security services.

    Parliamentary committees have documented cases of suspected drug barons operating with impunity, protected by networks of compromised officials.

    The National Assembly’s Departmental Committee on Administration and National Security has called for lifestyle audits of senior airport personnel, noting the inexplicable wealth accumulation among individuals earning modest government salaries.

    The latest scandal involving Gedi adds a troubling dimension: the head of the institution responsible for airport security now faces American allegations of complicity. While no formal charges have been filed, the visa denial under provisions typically reserved for national security threats sends an unambiguous message from Washington.

    Montreal Without Gedi

    The visa denial was communicated ahead of a scheduled bilateral meeting between Kenyan officials and Acting TSA Administrator Ms. Ha Nguyen McNeill, held on September 25, 2025, during the 41st ICAO Assembly in Montreal. The meeting proceeded as planned, but Gedi’s conspicuous absence spoke volumes.

    A letter from TSA Attaché for East and South Africa, Mr. Edwin Falcon Jr., confirmed that while the visa application was submitted with full documentation, it was refused for “additional administrative processing.” Under U.S. law, visa applicants must demonstrate full eligibility, and the burden of proof lies with the applicant under INA 291.

    Sources familiar with the case indicated that Gedi’s application may have been flagged due to concerns involving national security and integrity-related issues, including suspected ties to terrorist networks, corruption in aviation procurement, and illicit narcotics activities.

    The TSA meeting in Montreal covered critical security matters: finalizing agreements for the One Stop Security program, advancing a pilot to permanent transition of security protocols, US support for African nations’ integration into international aviation safety frameworks, enhancing security infrastructure at JKIA and Moi International Airport through equipment upgrades, expanding training workshops to strengthen Kenya’s aviation security capabilities, and planning a biometric study tour at Frankfurt International Airport.

    American officials were diplomatic in their public statements, expressing confidence that Gedi’s absence would not hinder the goals of the meeting and emphasizing continued collaboration. But privately, sources indicate that Washington has made clear that Kenya’s aviation privileges depend on demonstrable action against the corruption and criminality that have infected its airports.

    What Happens Next

    Kenya’s Ministry of Transport has remained conspicuously silent beyond scheduling the emergency Sunday meeting. KAA has issued no formal statement, and Gedi, while confirming the incident, said the move came as a surprise.

    The institutional paralysis speaks volumes about the sensitivity of the matter and the potential legal and diplomatic ramifications.

    For JKIA, the path forward requires more than statements of concern.

    International aviation authorities are watching closely to see whether Kenya will conduct genuine investigations, remove compromised officials, and implement the security protocols that Western partners have demanded.

    The stakes extend beyond one man’s visa.

    Kenya’s reputation as a stable aviation hub, its access to lucrative Western routes, and its broader relationship with the United States all depend on how seriously Nairobi takes this crisis.

    As President Trump escalates his administration’s war on narcotics trafficking, countries that serve as transit points face a stark choice: clean house or face isolation.

    For Kenya, that reckoning has arrived at 30,000 feet. The emergency Sunday meeting between Mbaika and Gedi may well determine whether JKIA can salvage its international standing or whether this scandal marks the beginning of Kenya’s aviation isolation.

    Jomo Kenyatta International Airport
    Jomo Kenyatta International Airport
  • Kenyan Fury Erupts Over Sh243m Legal Fee in Adani Airport Scandal

    Kenyan Fury Erupts Over Sh243m Legal Fee in Adani Airport Scandal

    Official documents reveal how state authority justified bypassing competitive tender for politically connected law firm despite budget being exceeded twentyfold

    Public outrage is intensifying across Kenya following revelations that the state-owned Kenya Airports Authority awarded Sh243m ($1.9m) to a newly registered law firm to defend controversial petitions against the now-cancelled Adani Group lease of Jomo Kenyatta International Airport.

    The sum is nearly 20 times the original budget allocation.

    The procurement process, which bypassed competitive bidding through direct tender provisions, has sparked accusations of systemic corruption and raised fundamental questions about fiscal accountability in one of East Africa’s most consequential infrastructure disputes.

    Official correspondence obtained by the public shows KAA’s acting Managing Director Dr Mohamud M. Gedi formally sought approval from the Principal Secretary of the State Department for Aviation and Aerospace Development on 25 September 2025, requesting retrospective authorization for the inflated expenditure.

    The Numbers Behind the Controversy

    Documents obtained by whistleblower Nelson Amenya, a Kenyan graduate student who first exposed the Adani airport proposal in July 2024, reveal the Kenya Airports Authority initially budgeted Sh12.5m for legal representation.

    The final contracted sum of Sh243,185,700 represents a 1,845 per cent increase from the original budget provision of Sh12.5m.

    Triple OK Law Advocates LLP secured the tender through direct procurement citing “urgency” and “prior knowledge” of the case.

    The tender was opened on 23 January 2025 and received a single bid from the firm.

    According to KAA’s official letter to the ministry, a Tender Evaluation Committee initially recommended re-tendering due to budget constraints.

    However, three factors led to a reversal of this position.

    First, the committee cited “retrospective procurement,” noting that services were rendered urgently in high-profile, constitutionally sensitive matters already before the courts.

    Second, officials argued the firm possessed critical institutional knowledge essential to KAA’s defence.

    Third, a 10 per cent price reduction was secured during negotiations held on 2 May 2025, after which the firm successfully delivered on key assignments.

    The cost structure breakdown remains opaque.

    KAA officials have not disclosed hourly rates, staffing allocations, or disbursement schedules that would justify the expenditure.

    This gap violates public procurement transparency standards, critics argue.

    Legal and Constitutional Questions

    The procurement raises substantive constitutional concerns.

    Under Article 156 of Kenya’s Constitution, the Attorney General serves as the principal legal adviser to government entities and represents them in court proceedings. Legal experts question why KAA outsourced representation to a private firm when the AG’s office possesses statutory mandate and existing capacity.

    “This is outrageous,” constitutional lawyer Karanja Matindi wrote on social platform X.

    “The AG is the mandated person, under Article 156 of the Constitution, to represent KAA in the matter.

    The accountable person at KAA should be required to make good this loss of public funds under Article 226(5) of the Constitution.”

    Article 226(5) empowers parliament to enact legislation requiring accounting officers to personally compensate for financial losses resulting from willful violations of procurement procedures. However, such provisions have rarely been enforced, contributing to what transparency advocates characterize as a culture of impunity.

    The selection of Triple OK Law through direct procurement was processed under Section 103(2)(b) of the Public Procurement and Asset Disposal Act, 2015, which allows for restricted tendering in specific circumstances.

    KAA justified this citing the firm’s prior engagement and knowledge of the cases.

    However, the provision typically applies to situations where compatibility with existing equipment or services is required, or where only one supplier exists, raising questions about its appropriate application in this instance.

    The firm’s recent incorporation and alleged political connections compound perceptions of favouritism. Critics have labelled it “the KANU/Raila Odinga firm,” suggesting links to opposition political machinery.

    Five Petitions, One Expensive Defence

    The legal fees stem from KAA’s defence against five separate petitions and judicial review matters challenging what became Kenya’s most contentious infrastructure deal. The official letter lists the cases as:

    First, Judicial Review Case No. E199/2024 filed by the Kenya Human Rights Commission and the Law Society of Kenya against KAA and four others. Second, Petition No. E366/2024 brought by Isaack Lango Guyo against KAA and two others.

    Third, Petition No. E466/2024 filed by Tony Gachoka and another against Adani Group and seven others. Fourth, Petition No. E624/2024 lodged by Kenya Aviation Workers Union against KAA and four others. Fifth, Petition No. E626/2024 brought by Katiba Institute against the State Law Office and others.

    The disputes largely question the constitutionality, legality, and procedural compliance of the Privately Initiated Proposal by Adani Airport Holdings Limited for the development and operation of Jomo Kenyatta International Airport.

    Key issues include public participation, transparency, statutory adherence under the Public Private Partnership Act, and broader implications on national security and management of strategic public assets.

    KAA’s letter notes that authority officials were “cited as a respondent in several petitions and judicial review matters arising from the proposed Privately Initiated Proposal (PIP) by Adani Airport Holdings Limited (AAHL) for the development and operation of Jomo Kenyatta International Airport.”

    The Adani Saga: From Secrecy to Scandal

    In June 2024, the Adani Group proposed a 30-year lease to modernize JKIA, East Africa’s busiest airport, promising $1.85bn in upgrades. The arrangement would have granted operational control to foreign private interests in exchange for revenue-sharing terms that leaked documents suggested heavily favoured the conglomerate.

    Amenya’s disclosure of the proposal in July 2024 triggered immediate backlash.

    Aviation workers staged strikes, senators convened emergency hearings, and civil society organizations filed court petitions arguing the deal violated constitutional requirements for public participation and transparent procurement.

    Leaked contractual provisions revealed clauses requiring Kenya to compensate Adani if the company failed to achieve projected returns.

    This fiscal guarantee could expose taxpayers to hundreds of millions in liabilities, critics warned. Independent feasibility studies commissioned by parliament reportedly questioned the deal’s value proposition, though officials proceeded with negotiations.

    The controversy escalated in October 2024 when Kenya’s High Court halted a separate $736m Adani power transmission contract, citing opacity and inadequate stakeholder consultation.

    Then in November 2024, United States federal prosecutors indicted Adani Group chairman Gautam Adani and seven executives for allegedly orchestrating a $265m bribery scheme to secure contracts in India.

    President William Ruto’s administration cancelled both the airport and energy deals within days of the US indictment, but the legal challenges continued as petitioners sought declarations on the procurement processes’ legality. It was this defensive litigation that prompted KAA’s massive legal expenditure.

    In his letter seeking ministerial approval, Dr Gedi acknowledged the ballooning costs.

    “In view of the expanded scope and evolving nature of the ongoing matters under litigation, the Authority respectfully seeks guidance on the review and adjustment of current budgetary estimates to ensure that they adequately reflect the expanded scope of work, the protracted timelines of the litigation, and the specialized expertise required.”

    The letter was accompanied by four supporting documents: the tender document submitted by the bidder, an evaluation report dated 10 February 2025, minutes of a meeting held on 2 May 2025, and a professional opinion dated 4 September 2025.

    Dr Gedi requested that the approval be communicated to both the Office of the Attorney General and the Department of Justice, indicating awareness of the sensitive nature of the procurement.

    Following the Money

    The inflated legal costs represent only a fraction of the Adani affair’s fiscal impact.

    Application fees, administrative expenses, and parliamentary inquiry costs have reportedly exceeded Sh500m, according to social media estimates cited by critics.

    The cancelled deals themselves involved potential government guarantees worth billions.

    Dr Miguna Miguna, a prominent political commentator, characterized the legal fee arrangement as “theft of public resources,” alleging the law firm serves as a conduit. “The law firm is paid, it takes one hundred million and distributes the rest through shell companies and offshore accounts! We know their handwriting!”

    Such allegations, whilst unsubstantiated, reflect deep public cynicism about procurement integrity.

    Transparency International’s 2024 Corruption Perceptions Index ranked Kenya 123rd of 180 countries, with public procurement identified as a key vulnerability.

    Nelson Amenya questioned the process directly.

    “Have they disclosed how much they have paid and to whom? They meandered between the quotation by their handpicked firm and the ‘budget’ and failed to say how they got the hundreds of millions to bridge the gap. Mere applications cost Kenyans a half a billion shillings? Completely crazy!”

    Amenya has called for citizens to file counter-petitions challenging the legal expenditure. “Can we file a counter petition?” he asked on X, suggesting litigation to compel personal accountability from KAA officials under constitutional provisions.

    Screenshot
    Screenshot

    Accountability Vacuum

    The controversy exposes systemic weaknesses in Kenya’s public finance management. Whilst constitutional and statutory frameworks mandate competitive procurement, transparency, and personal accountability for officials, enforcement mechanisms remain inconsistent.

    The Ethics and Anti-Corruption Commission, Kenya’s primary anti-graft agency, has not publicly announced investigations into the KAA procurement. Parliamentary oversight committees, which possess subpoena powers, have yet to summon officials for testimony on the cost inflation.

    This accountability vacuum perpetuates what activists describe as “budgeted corruption.” The practice involves building inflated costs into initial appropriations to obscure subsequent misallocation.

    The Sh12.5m to Sh243m trajectory suggests either gross initial underestimation or deliberate budget manipulation to accommodate predetermined recipients.

    The timing of KAA’s request for ministerial approval on 25 September 2025, months after services had been rendered and contracts executed, raises further questions about governance protocols. The letter’s reference to seeking “guidance on the review and adjustment of current budgetary estimates” suggests retrospective authorization for expenditure already incurred.

    The Adani-KAA affair illustrates broader governance challenges confronting Kenya’s infrastructure ambitions.

    The country requires substantial capital investment to maintain competitiveness, yet procurement scandals repeatedly undermine investor confidence and drain public resources.

    The episode also highlights tensions between executive urgency and democratic oversight. Officials justified direct procurement citing litigation deadlines and the need for firms with institutional knowledge.

    Yet critics argue proper planning would have enabled competitive bidding without compromising legal defence, and question why the Attorney General’s office could not have handled the cases.

    The justification that Triple OK Law Advocates possessed “critical institutional knowledge essential to the Authority’s defence” raises additional concerns.

    If the firm gained this knowledge through previous engagement, questions arise about when and how that initial relationship was established, and whether it too bypassed competitive procurement.

    As legal proceedings continue, the Sh243m fee has become a focal point for public frustration with opacity in government contracting.

    Whether accountability mechanisms will produce consequences for officials or merely generate further rhetoric remains uncertain.

    What is certain is that Kenyan taxpayers are bearing the cost, not only in shillings spent, but in eroded trust in institutions meant to safeguard the public interest. The scandal has reignited calls for comprehensive procurement reform and stronger enforcement of existing anti-corruption statutes.

    Public pressure continues to mount on social media platforms, where citizens are documenting the expenditure and demanding answers.

    The Kenya Kwanza government faces growing scrutiny over its handling of major infrastructure projects and the transparency of its decision-making processes.

  • KAA Announces Plans to Upgrade JKIA and Wilson Airport

    KAA Announces Plans to Upgrade JKIA and Wilson Airport

    Authority launches public consultation process for master plans to enhance Kenya’s key aviation hubs

    The Kenya Airports Authority has unveiled ambitious plans to transform the country’s two most critical aviation facilities through comprehensive master planning initiatives that will reshape Jomo Kenyatta International Airport and Wilson Airport for decades to come.

    The authority announced the launch of an extensive public engagement process this week, inviting communities and stakeholders across Nairobi to contribute their views on proposed development plans that will fundamentally shape the future of Kenya’s aviation sector.

    This marks a significant milestone in the country’s infrastructure development strategy, emphasizing community participation in major national projects.

    As part of the comprehensive planning process, KAA is conducting a Strategic Environmental and Social Assessment in partnership with international consultants Dar Al Handasah, working alongside Shair and Partners and local firm Geodev Kenya Limited.

    The assessment adheres strictly to Kenya’s Environmental Management and Coordination Act of 1999, ensuring that all environmental and social considerations are thoroughly evaluated before implementation begins.

    “Your participation will help shape the future of these airports and ensure that community issues are well understood and taken into account,” KAA emphasized in their announcement, underscoring the critical importance they place on incorporating public input throughout the planning process.

    This approach reflects a broader commitment to inclusive development that considers both national infrastructure needs and local community concerns.

    The master plans being developed are designed to establish a comprehensive long-term vision that encompasses infrastructure development, operational efficiency, environmental sustainability, and social inclusion for both airport facilities.

    These documents will serve as the blueprint for all future developments at Kenya’s most important aviation hubs, guiding investment decisions and development priorities for years to come.

    KAA has organized an extensive series of community meetings across various locations in Nairobi to ensure broad stakeholder participation.

    For Wilson Airport consultations, residents can attend sessions on July 21st at the Lang’ata DCC Boardroom in Nairobi West, followed by a meeting on July 23rd at South C CDF Hall, and concluding on July 28th at the Chief’s Grounds in Lang’ata Mugumoini. All Wilson Airport sessions will run from nine in the morning until noon.

    The JKIA consultation schedule begins on July 22nd at Syokimau’s Chief’s Camp, continues on July 24th at Embakasi Social Hall, and concludes on July 25th at Mihang’o Chief’s Office in Utawala.

    These sessions will also operate from nine in the morning until noon, providing ample time for comprehensive community input and discussion.

    The announcement comes at a critical juncture when both airports face mounting pressure from increasing passenger traffic and evolving international aviation standards.

    JKIA, serving as Kenya’s primary international gateway, processes the vast majority of the country’s international air traffic and serves as a crucial connection point for travelers throughout East Africa.

    Meanwhile, Wilson Airport has established itself as East Africa’s busiest general aviation facility, handling domestic flights, charter services, and private aviation operations.

    The master planning initiative represents a pivotal step toward modernizing Kenya’s aviation infrastructure to meet anticipated future demands while maintaining the country’s strategic position as the region’s primary aviation hub.

    These upgrades are essential not only for improving passenger experience but also for ensuring Kenya remains competitive in the increasingly dynamic global aviation market.

    KAA’s comprehensive approach to stakeholder engagement demonstrates a commitment to inclusive participation, specifically targeting neighboring communities, local organizations, and individuals who may be directly or indirectly affected by the airports’ development and ongoing operations.

    The consultation sessions are designed to thoroughly inform the public about the scope, intentions, and potential implications of the proposed master plans while actively soliciting meaningful contributions that will directly influence final planning outcomes and implementation strategies.

    This extensive planning process reflects Kenya’s broader commitment to sustainable development practices and community-centered infrastructure projects, ensuring that airport modernization efforts carefully balance operational requirements with local community needs and environmental considerations.

    The initiative also underscores the government’s recognition that successful infrastructure development requires genuine partnership between authorities and the communities they serve.

  • David Ndii At The Center Of Controversial JKIA-Adani Deal, Court Documents Reveal

    David Ndii At The Center Of Controversial JKIA-Adani Deal, Court Documents Reveal

    The government could have been quietly engaging Adani Group to lease Jomo Kenyatta International Airport (JKIA) for over a year, fresh details have emerged in court.

    In a case where President William Ruto’s principal economic advisor David Ndii is named as a person who had been aware of the deal, it is alleged that the Indian conglomerate through Adani Airports Holding Ltd – had on April 25, 2023, submitted to Kenya Airports Authority (KAA) a privately initiated proposal (PIP) for development of JKIA under public-private partnership arrangement.

    According to Tony Gachoka, Jubilee Party, Wiper Party, Democratic Action Party Kenya (DAP-K) and Mount Kenya, Adani PIP was copied to Ndii, the National Treasury and the Ministry of Roads and Transport.

    However, Gachoka’s lawyer Ndegwa Njiru claims that they remained tight-lipped about the deal until this year when Adani allegedly floated its PIP.

    Adani in its case claimed that it floated the idea to refurbish JKIA on March 1, 2024, after seeing the deteriorating state of the international airport in the media.

    However, the Njiru alleged that the deal was being worked backwards in order to favour the firm. He argued that the idea to directly procure the construction of a new passenger terminal at JKIA was done with the Adani Group in mind.

    The lawyer alleged that through a contract dated December 13, 2023, KAA  procured advisory services for the construction of a new passenger terminal building at JKIA.

    He told the court the team recommended an Airport PPP as opposed to a terminals PIP as the most beneficial to Kenya.

    President William Ruto’s adviser David Ndii.

    “Unsurprisingly, on March 1, 2024, the second respondent submitted to the KAA its PIP for the development of JKIA under PPP arrangements. On the same day, the JKIA submitted the said proposal to the 9th respondent PS Mohammed Daghar who on the same day submitted the proposal to the PS National Treasury Chris Kiptoo. The petitioners earnestly believe these activities did not take place on 1 March 2024 as demonstrated,” argued Ndegwa.

    The court heard that contrary to the government’s claim that Adani was the only firm interested in developing JKIA, other firms had floated their proposals. The lawyer claimed that Abu Dhabi, China Road and Bridge Corporation and Motar Etgil Africa/Corporation America JV had proposed to develop JKIA through PPP. He said that despite the documents being before KAA), the government never disclosed them same to the public.

    “By a further letter dated June 12, 2023, referencing “Proposed Construction of a Second Runway at Jomo Kenyatta International Airport (JKIA) the 9th respondent  PS Mohamed Daghar stated that the KAA had not formally submitted the PIP submitted by Adani Airport Holdings Ltd and their preliminary appraisal of the same,” claimed Ndegwa..
    He further claimed that PIP for JKIA submitted by Adani is lopsided and subversive of Kenya’s public interest.

    Ndegwa said that despite the government drumming up for the firm to take over JKIA for 30 years, no one can put a finger on how much Adani had invested or will pump to the project.

    The lawyer alleged that the Indian firm is being gifted JKIA without paying a penny.

    “Adani Group PIP does not specify the exact amount to be invested despite the fact that investment is the principal criterion for PPP under the 2011 Policy on PPPs and subsequent legislations. For all practical purposes, the existing and potential revenue of JKIA are simply being transferred to the 2nd Respondent and its undisclosed Kenyan partners to invest for their private gain. This is a clear case of sovereign robbery,” claimed Ndegwa.

    The court heard that the government is going against a 2019 Parliament report that shielded JKIA from privatization or control by foreigners.

  • Adani Group Link In Kenya’s Sh104B Healthcare Plan

    Adani Group Link In Kenya’s Sh104B Healthcare Plan

    Apeiro Limited, the largest shareholder in the Safaricom consortium that has been awarded the contract for the technology-based system for the Universal Health Coverage (UHC), has business links to the Adani Group.

    The government has awarded the consortium a contract to provide an Integrated Healthcare Technology System (IHTS) for the UHC programme. Each of the three firms will contribute to the Sh104.8 billion needed to implement, maintain and support the IHTS system over the next ten years based on their shareholding.

    The Abu Dhabi firm owns 59.55 percent of the stake in the consortium, Safaricom has a 22.56 per cent stake, while Konvergenz Network Solutions Limited has a shareholding of 17.89 per cent.

    The firms will recoup their investment through monthly instalments that will be paid starting February next year, upon hitting the set performance milestones.

    Apeiro is a subsidiary of Abu Dhabi-based investment firm, Sirius International Holding.

    Sirius itself is a subsidiary of International Holding Limited (IHL), creating a web of companies that make it hard to track the beneficial owners.

    Sirius is currently in a joint venture with Adani in which they run a company known as Sirius Digitech Limited.

    In July this year, this joint venture announced the acquisition of Coredge.io Private Limited which they called a “cutting edge sovereign AI and cloud platform company”.

    The Adani Group has recently gained notoriety in Kenya after it emerged that the Indian conglomerate is in negotiations to operate the Jomo Kenyatta International Airport for a period of 30 years.

    The group is also in negotiations for a multibillion dollar long-term lease contract in Kenya’s energy sector.

    The business partnerships have for the first time created a link between Adani and the President William Ruto-championed UHC.

    Far less known, however, is the third member of the consortium, Konvergenz Network Solutions. Its website claims to operate in Kenya, Uganda and Tanzania, with its address listed as 4th Avenue Towers in Upperhill.

    “It is noteworthy that the Safaricom Consortium will invest the full project cost and recover their investment over 10 years by payment of monthly instalments (the instalment payments will commence from February 2025) based on the successful implementation of the project,” said Medical Services Principal Secretary Harry Kimtai in a press statement on Friday.

    The Safaricom consortium is said to have been picked to implement the big-money project through a Specially Permitted Procurement Procedure under the Public Procurement and Assets Disposal Act.

    The Adani link in the UHC project comes at a time the company is trying to put out fires that have been lit under its feet by civil society groups that are opposed to its $2 billion (Sh258 billion) takeover of the Jomo Kenyatta International Airport (JKIA).

    Last week, Adani argued in court that its JKIA takeover on a 30-year concession would be of “tremendous benefit to the Kenyan public”.

    “If the contract is signed as proposed in the PIP (privately-initiated proposal) the project will elevate the status of JKIA and also offer an increase in job opportunities to the people of Kenya,” said Adani.

    In Kenya, Adani is being represented by well-known law firm Dentons, Hamilton Harrison & Mathews, where lawyer Adil Khawaja is a senior partner. President William Ruto’s son, Nick Ruto, also works at the law firm.

    Mr Khawaja also currently serves as the chairman of Safaricom, which is the local face of the UHC contract.

    But it has also emerged that the events that led to Adani’s proposed takeover of JKIA kicked more than two years ago, when President Ruto took office.

    A study – whose findings are yet to be publicly released – that was undertaken by a Spanish firm in 2022 purportedly revealed a significant gap in the necessary infrastructure at JKIA to handle increased passenger traffic opened the door for the entry of Adani Group into Kenya.

    Spanish logistics and transport consultancy firm ALG Global was picked by the National Treasury’s Public Private Partnerships (PPP) Directorate to create a national aviation policy as well as the investments that the country needed to make in its aviation infrastructure in the medium-term to establish itself as a major aviation hub.

    ALG Global is a subsidiary of Indra Group, a Madrid-based holding company with interests in global defence, air traffic and space companies.

    The firm, which has 57,000 workers worldwide, made €4.343 billion (Sh624.5 billion) revenues in 2023.

    “ALG was engaged by Kenya’s Ministry of National Treasury and Planning to provide consultancy services for the development of an aviation policy for Kenya, and to review the proposed medium-term investment requirements for enhancing its aviation infrastructure and related services, particularly at Jomo Kenyatta International Airport in Nairobi,” says the Spanish firm on its official website.

    When he appeared before the Senate Committee on Roads, Transport and Housing last week, Roads and Transport Cabinet Secretary Davis Chirchir revealed that ALG’s study set the stage for the pivot towards public private partnerships (PPPs) for development of airports due to financial constraints at the exchequer.

    “The infrastructure deficit was an output of the National Aviation Policy study and Medium-Term Investment Plan of December 2022 done by ALG of Spain,” said Mr Chirchir.

    “The government is pursuing the PPP model on account of fiscal constraints in the face of acute infrastructure constraints,” he said.

    Once ALG finished the National Treasury assignment, it was also handpicked by the Kenya Airports Authority (KAA) to undertake a feasibility study on JKIA, which would later be used in the Adani deal.

    KAA revealed that ALG was not competitively recruited to undertake the feasibility study on JKIA and that it was singularly sourced.

    “We rode on their institutional memory and the fact that they had data so we recruited them directly to do for us the feasibility study,” said KAA acting Managing Director Henry Ogoye when he appeared before the Senate alongside Mr Chirchir.

    Additionally, ALG was also involved in the drafting of the Heads of Terms between KAA and Adani. Heads of Terms are preliminary agreements that precede substantive contract negotiations.

    Mr Chirchir also named Kenyan law firm Ashitiva Advocates as one of the firms that were involved in the drafting of the document, even as Senators threatened to amend the law to force State officials to promptly reveal any privately-initiated proposals submitted by investors.

    “I think the committee will be making a recommendation that we make an amendment to the law on PPP (that) immediately somebody arrives at your office with a so-called privately-initiated proposal, within 48 hours you must disclose,” said Nairobi Senator Edwin Sifuna.

    According to its website, Ashitiva Advocates describes itself as a specialist law firm in energy, natural resources and infrastructure, financial services and construction, telecommunications, media and technology.

    “I do not have this information with me at the moment. Please let me consult Nelson Ashitiva (a senior partner at the firm) and we will respond on Monday,” said a representative of the law firm when contacted by Nation Africa for further information on its role in the Adani-JKIA deal.

    Adani is also in talks with the Kenya Electricity Transmission Company (Ketraco) for a Sh95 billion contract for the construction of three high voltage power transmission lines and two substations.

    Adani is seeking to recoup Sh634.7 billion ($4.92 billion) from the investment over a period of 30 years.

  • Whistleblower Names KNH Chairman Samier Muravvej As Part Of Local Indian Cartel Behind JKIA Takeover Deal With Adani Group

    Whistleblower Names KNH Chairman Samier Muravvej As Part Of Local Indian Cartel Behind JKIA Takeover Deal With Adani Group

    The whistleblower of the controversial Adani Group secret deal for the takeover of Jomo Kenyatta International Airport (JKIA) has named Dr. Samier Muravvej, Board Chairman, Kenyatta National Hospital (KNH), as one of the key players who’s silently facilitating the hostile takeover of the airport, an issue that has dominated national conversation since the protests.

    Nelson Amenya, the whistleblower, places Dr. Samier at a key role in what he describes as an ‘Indian Syndicate’ working with the Adani Group to takeover the operations of the airport.

    Dr. Samier is not new to controversies, as portrayed by his tenure at the national healthcare facility. Recently, he was linked to a multimillion-dollar oxygen tender row that saw the key infrastructure stalled amid war with corrupt CEO Dr. Evans Kamuri, who’s under EACC investigation for looting the hospital millions.

    During an appearance in parliament, it emerged Dr. Samier had conflict of interest in the oxygen plant tender as he had his own preferred suppliers.

    Insiders also accuse him of flaunting procurement procedures and more than often brings in his own suppliers and has placed himself as a cartel boss rather than a chairman of the facility.

    Aaron Cheruiyot

    Back to the JKIA saga, Kericho Senator has also been named as the man who brokered the controversial deal and the link to Dr. Samier. During a live interview with KTN on Wednesday, Amenya revealed the unholy relationship between the two and untold details about the behind-the-scenes of the Adani deal.

    “I am the one who shared the documents with politicians. Nobody, including Senator Onyonka, knows anything about this deal except Aaron Cheruiyot, who is the broker in this deal, and he was the one who went to India, met with Adani, and brought Adani to Kenya.” Amenya said.

    “I am challenging Aaron Cheruiyot to come and say I’m lying that he didn’t go to India and that he doesn’t know the KNH chairman takes him to the airport, picks him, and all this Indian syndicate that he is working with. He should come out and say that this is false.” He went further.

    More revelations

    One of the key fears of the Kenya Airports Authority (KAA) staff with the Adani deal has been loss of jobs after takeover. While the group has tried to allay fears, Amenya didn’t have kind words for them: “Basically, everything I have talked about on my X account is what they will find in these documents. They will find that Adani proposes to KAA that they (Adani) will reduce the workforce exponentially because obviously governments all over the world employ too many people and sometimes they are not working, which also happens in Kenya. What Adani is asking KAA is to allow them to trim the team. They even put in that proposal that KAA needs to look for departments to redeploy because they will let go of those people from JKIA.”

    The Adani Group Deal

    The plan for airport takeover involves leasing the Jomo Kenyatta International Airport to the Adani Group for 30 years in exchange for $1.85 billion of investment by Adani into the airport’s expansion.

    However, the deal shrouded in secrecy sparked anger among Kenyans and triggered a strike last week by the country’s aviation workers. Earlier, Gen Z protesters had dared to storm and takeover the airport following the reports of the takeover.

    The Adani Group operates seven airports in India and has often faced criticism from Indian opposition parties for winning favours from ruling governments. Indian officials and the Adani Group have denied such accusations.

    Kenya is struggling with a high debt load accumulated from years of splurging on infrastructure.

    A proposal by the government to hike taxes to generate extra money needed for debt repayments sparked deadly protests recently and forced the government to rescind the proposal.

    The plan involves leasing the Jomo Kenyatta International Airport to the Adani Group for 30 years in exchange for billions of shillings of investment by Adani into the airport’s expansion.

    According to senators, the controversial takeover of the Jomo Kenyatta International Airport by Indian tycoon Adani is a done deal, according to the Senate.

    This emerged when senators disapproved of the 30-year proposed takeover of JKIA airport operations by the Adani Group of India.

    Several organizations have filed suits against this deal.

    [pdf-embedder url=”https://cms.kenyainsights.com/wp-content/uploads/2024/09/Feasibility-Report-by-Adani-Airports-Holdings-Limited-for-the-development-of-JKI.pdf” title=”Feasibility Report by Adani Airports Holdings Limited for the development of JKI”]

  • Data Breach: Kenya Airways Hacked, Sensitive And Confidential Files Leaked

    Data Breach: Kenya Airways Hacked, Sensitive And Confidential Files Leaked

    Kenya Airways appears to have been hit by a cyberattack by Ransomexx ransomware group on December 30, 2023 leading to a massive data leak including highly sensitive and confidential data that they uploaded on the dark internet.

    The airline, which plays a crucial role in connecting African nations to the rest of the globe, now suffers the aftermath of a targeted cyberattack that has exposed sensitive information, posing significant challenges to its operations and reputation.

    The data leak allegedly started when Kenya Airways fell victim to a sophisticated cybercriminal attack by the Ransomexx group. These hackers are notorious for targeting various organisations worldwide.

    Documents leaked cover aircraft accidents, investigation reports into employee misconduct like fraud, theft, policy violations.

    A huge volume of internal Kenya Airways data compromised including; insurance policies, confidential agreements, passwords, customer complaints, alleged sexual harassment incidents. The exposed files also contain files relating to accidents, as such documents were named ‘Accident docs’, ‘Accident investigations’, ‘Accidents’, ‘Air Accident Investigations’, and ‘Investigation Reports.’

    The leak also contains details of politically exposed people. This has dealt a blow to Kenya Airways for failing to secure the safety of customers data and exposing the airline to cybercriminals. This breach also could enable theft and fraud from the employees and customers leaked data.

    Last year in April, retail chain Naivas was hit with a similar cybersecurity breach that resulted in the exposure of crucial customer data. According to the government, the criminal group was able to transfer 611 GB of personal data.

    Naivas attackers obtained information from their customer loyalty program. The data illegally transferred had names, phone numbers, and email addresses.

    According to set laws, a cyber-attack of this kind must be reported within 72 hours of discovery. However, Naivas failed to follow the set law and did not report. As a result, Data Commissioner Immaculate Kassait said the local supermarket chain was be fined up to KES 5 Million.

    It also remains unclear whether Kenya Airways has also informed the Office of the Data Protection Commissioner Kenya of the incident.

    What Are Ransomware Attacks?

    Ransomware is a type of malware designed to deny an individual or an organization access to their files. Attackers gain access to the files on a computer or shared server and encrypt them, denying a user or organization access to their data. They then demand a ransom payment in exchange for the decryption key, with the payment often made through cryptocurrency. In some cases, such as the Naivas and KQ ransomware attacks, they include an element of  data theft – providing greater incentive for victims to pay the ransom. In a previous Kenya Airport Authority (KAA) attack, the attackers demanded Ksh67.6 million while threatening to release the data, but KAA termed the data breach insignificant while failing to pay up.

    Ransomware today is one of most prominent types of malware. Across the world, attackers are targeting organizations including dating apps, ecommerce platforms, hospitals, insurers and medical companies and holding sensitive data hostage.

    Kenya National Bureau of Statistics (KNBS) data indicates that cybersecurity advisories issued to companies increased by 3,693 percent from 81,727 in 2020 to 3.1 million advisories in 2021. The adoption of improved detection technology played a part.

    Total cyber threats rose by 142 percent from 139.1 million to 339.1 million over the same period. Of the cyber threats reported, system vulnerabilities rose from from 114,675 in 2020 to 58 million in 2021. Reported Botnet/DDOs threats also increased from 4.1 million in 2020 to 92.1 million in 2021.

    The consistent increase in attacks has been attributed to the growing number of cyber threat actors such as hacktivists, state-sponsored groups, organized cybercriminals, and cyber terrorists.

  • KAA assets facing auction over Sh37bn debt

    KAA assets facing auction over Sh37bn debt

    The Kenya Airports Authority (KAA) is at the brink of having its assets seized and auctioned by contractors who are pursuing a piling Sh37 billion debt against the State agency.

    KAA owes both local and foreign contractors the billions of shillings in claims following cancellation of contracts, variation of contracts, interests on delayed payments and accrued fines. The claims are at different stages of arbitration tribunals at Court of Appeal and the High Court.

    Data shared with the National Assembly’s Public Investments Committee (PIC) shows that KAA had a contingent liability of more than Sh36.9 billion by the end of 2016/2017 financial year.

    Most of KAA’s debts is owed to Chinese firms that it hired when rehabilitating the country’s major Airports. The biggest liability being the Sh17.61 billion that Anui Construction Engineering Group and China Aero-Technology International Corporation (Catic) jointly slapped on KAA after it cancelled a Sh64 billion greenfield terminal project at Jomo Kenyatta International Airport (JKIA).

    The agency cancelled the greenfield project on grounds that it lacked adequate funds to oil the project after making an advance payment of Sh4.2 billion to the Chinese firm which moved to court to demand an additional Sh17.6 billion for the project that never took off.

    World Duty Free also instituted a case in 2013 where it is demanding Sh4.93 billion from KAA for breaching of a March 1989 agreement that granted them exclusive rights over duty-free shops at the country’s major airports.

    KAA managing director, Alex Gitari told the parliamentary committee chaired by Mvita MP Abdulswamad Nassir that they appealed against the 2012 award that directed it to pay Sh4.94 billion ($49,096557) in 2018. Sinohydro Corporation is demanding Sh1.5 billion from KAA for the construction of a Sh6.2 billion runway and refurbishing of aircraft pavement at the JKIA.

    Gitari argued that the projects were done in phases subject to availability of funds but the contractor in 2019 presented a claim of Sh1.53 billion for outstanding certificates, interests accrued on delayed payment, tax refunds, retention money, and idle resources after KAA suspended the works.

    He was categorical that no legal proceedings have been instituted against the authority but the parties are considering negotiations to break the impasse. KAA is also under immense pressure from the Kenya Revenue Authority (KRA) who is demanding a Sh4.2 billion tax claim.

    Others who have either issued demand notice or slapped KAA with hefty bills include Doch Company Ltd (Sh955 million), Mitu-Bell Welfare Society,Patrick T Kanyuira (Sh1 billion) Mission Logistics (Sh719.7 million) and Machiri Limited Sh388 million.

    Chinese firm Catic is demanding payments through three different claims of Sh939 million, Sh882 million and Sh486 million, Baseline Architects and three others Sh404 million, Queens Quay Architects International Inc. Sh335 million, China Overseas Engineering Group Sh388 million and  Moniks Agencies which is demanding Sh319 million.

  • Kisumu Airport To Get Sh157M Facelift Ahead Of Africities Summit

    Kisumu Airport To Get Sh157M Facelift Ahead Of Africities Summit

    Kenya Airports Authority (KAA) plans to rehabilitate the old airport and passenger terminal at Kisumu International Airport in preparation for 9th Edition of Africities Summit scheduled to take place next year April.

    The funding was obtained from the Ministry of Transport and Infrastructure through requisition by the County Government of Kisumu.

    The government agency has set aside sh157 million for rehabilitation of the passenger terminal including fixing floors, walling, ceiling, air conditioning, electrical and other auxiliary works.

    According to KAA projects and engineering services General manager, Fred Odawo the rehabilitation work should be ready before April next year.

    “In order to be ready for the summit, Kisumu City needs to enhance several infrastructural installations. Part of the projects involves the rehabilitation of the old airport apron,” said Mr Odawo.

    He said they will construct a parking space about one thousand square metres from materials milled from the old apron.

    The projects will enable the airport to accommodate one million passengers annually from the current 500,000.

    “Apart from the expansion of the passenger terminal, we will be working on the pavements, the apron and the taxiway, where the old airport used to be,” he said.

    In a recent interview, KAA’s marketing manager Jimmy Kibati said funds will also be used to develop a parking garage for vehicles, as well as office space.

    “We lack office space in Kisumu International Airport. Basic procurement processes have already commenced, it will be complete by the time Africities Summit begins,” he said.

    He hinted that a number of international airlines have already applied for direct international flights to Kisumu International Airport.

    “International airlines such as Qatar Airways and Ethiopian Airlines showed interest to have direct flights to Kisumu International Airport. It is because of the cargo facility coming,” said Mr Kibati.

  • State In Talks To Revive Controversy-Ridden Sh56bn JKIA Terminal Project

    State In Talks To Revive Controversy-Ridden Sh56bn JKIA Terminal Project

    The Kenya Airports Authority (KAA) is holding talks with a Chinese company with a view to reviving works on the second runway at the Jomo Kenyatta International Airport in Nairobi.

    Known as Greenfield Terminal, the Sh56 billion project was cancelled in March 2016 barely two years after a ground-breaking ceremony that was held on May 23, 2014.

    At the time of cancellation, a down payment of Sh4.3 billion had been made to ACEG-CATIC JV, which was to undertake construction of the Greenfield Terminal.

    A total of Sh75 million was spent on ground-breaking, while Sh129.9 million was paid to consultant, Louise Berger. PwC received Sh7 million for securing the financier of the project.

    Following the termination of the contract, ACEG-CATIC JV wrote to KAA demanding to be paid a total of Sh17.6 billion for breach of contract.

    The Chinese company wanted KAA to pay Sh2 billion for the preparation of bill of quantities, Sh2.4 billion in additional costs, and Sh708.2 million value added tax charged by KRA.

    The contractor demanded an additional Sh5.6 billion, which included the balance of the contract for the bill of quantities, value added tax, and interest and penalties.

    KAA on its part demanded back the Sh4.3 billion that had been paid to ACEG-CATIC JV, forcing the contractor to sue. The matter is still pending in court.

    On Wednesday, KAA managing director Alex Gitari told the National Assembly Public Investments Committee that plans were underway to revive the Greenfield Terminal project and that KAA was in talks with the contractor to resolve the matter.

    “A team has been set aside to engage the contractor in negotiations on how the matter should be settled,” he said.

    The Greenfield Terminal tender was cancelled due to Kenya’s purportedly failure to raise 15% of the project cost, which would have unlocked the remaining 85% budget that was to be provided by a consortium of local and foreign banks.

    The KAA was to meet 15% of the required cost, which is about Sh8.4 billion, while the balance of Sh48 billion was to come from other lenders, including the China Exim Bank, Africa Development Bank (AfDB), American Consortium AAE and Standard Bank Group.

    Mooted during the Kibaki government as part of Vision 2030, the 178,000 square metres terminal would have given JKIA an extra handling capacity of 20 million passengers a year.

    The facility would have included 50 international check-in counters, eight air bridges for aircraft to dock, 45 aircraft parking stands, and an additional runaway.