RAILA LAMENTS LOSS OF ADANI DEAL

Former Prime Minister Raila Odinga has voiced his disappointment over the cancellation of the Adani deal to expand and manage Jomo Kenyatta International Airport (JKIA)—a move he believes cost Kenya a major opportunity to elevate Nairobi as a regional economic powerhouse.

During the second day National Executive Retreat in Karen on Friday, 20, June, Raila expressed his frustration, saying the deal’s collapse was not only unfortunate but a significant missed chance to transform Kenya’s aviation and investment landscape.

“I was very disappointed when we were not able to move on with the airport contract. That was very unfortunate."

Raila recounted that the original Greenfield expansion contract for JKIA had been awarded while he was Prime Minister under the late President Kibaki's regime, but was later cancelled after the exit of their administration . The same contractor was later re-engaged, only for that deal to also fall through due to disagreements.

The opposition leader turned government ally, who was present alongside senior government officials at the retreat, said the recent Adani deal, which would have seen the Indian firm operate JKIA and Ketraco for 30 years, was derailed due to political interference.

“We had awarded the Greenfield airport contract before we left government with Mwai Kibaki in 2012. That contract was cancelled. Then it was given to the same contractor but again cancelled after disagreements. When we got to Adani, politics came in and the deal was cancelled,” Raila explained.

The proposed partnership, valued at Sh637 billion, would have cost Sh238 billion for the airport expansion alone and was eventually terminated following a backlash from Kenyans led by the opposition.

The veteran politician further stated a need of not looking at these airports from a scope of profit making but a venture for long-term investments.

"Look at Emirates, people there do not look at the airline for profits, it is basically a vehicle bringing investors, shoppers and tourists to the emirates, " he said refering to the Arab's Emirates as a well performing airline.

Raila warned that unless the airport’s modernization is revisited, Nairobi risks stagnation, while other regional cities aggressively expand their infrastructure.

“KQ can be making losses, as long as it’s bringing people to our country. Put up a big airport in Nairobi, if we don’t do it, Rwanda is going to do it and Kigali can be the hub around here.”

The Adani deal resurfaced in 2024, it was to take over the management and renovation of the JKIA , following its structural damages — which showed the incapability of the government to maintain it.