David Ndii Refutes Claims Adani Paid Over KSh 250b Bribe For JKIA Deal, Kenyans React

• David Ndii, chairperson of the Presidential Council of Economic Advisors, refuted claims that the Adani Group paid over KSh 250 billion in bribes in the JKIA takeover deal
• Adani Group's proposal to take over JKIA has sparked criticism for prioritising commercial interests such as hotels and malls over critical infrastructure needs
• The Adani Group's 30-year management of JKIA will also include an 18% ownership stake in the airport in perpetuity
• Kenyans reacted strongly on social media, with many questioning the financial and strategic benefits of the deal

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

Kenyans are abuzz on social media after David Ndii, the chairperson of the Presidental Council of Economic Advisors to President William Ruto, addressed claims that Adani Group paid bribes to land the JKIA takeover deal.

The deal has been criticised for various concessions that have been seen as aligned with the commercial interests of the Adani Group instead of the interests of Kenya.

Why Kenyans are against JKIA takeover by Adani

Notably, the deal, which has been termed as a public-private partnership to elevate the status of JKIA, has been criticised by the Institute of Engineers of Kenya (IEK) for prioritising hotels and other commercial interests instead of JKIA revamp.

IEK stressed that the Adani plan prioritises City Side Development (CSD), including hotels and malls, which overlooks urgent needs like runways and taxiways.

The IEK is particularly alarmed that terminal and taxiway developments are delayed until Phase 2 (2029-2034) and that there is no provision for a new runway in the entire concession period.

Additionally, the Adani Group will take over the management of JKIA for the next 30 years and will get an 18% ownership of the Airport in perpetuity (for all time or forever).

Reportedly, the proposal also prevents Kenya from building or modernising another airport to compete with JKIA for the period of 30 years, which has drawn wide criticism.

David Ndii refutes bribery claims

Ndii, in a post on his X account, argued that it was illogical for the Indian firm to pay a large sum of bribes given their numerous investment options beyond the JKIA.

He further claimed that the company would not pay such a bribe when more attractive investment opportunities were available in Kenya.

"So Adani paid $2b bribe! for JKIA deal. Let’s do the math. Adani proposal. $2b investment. 30% equity = $600. 18% equity return (ask, actual will be less) = $108 p.a X 30 = $3.24b .

"Why would Adani risk $2.6b upfront for $3.24b in 30 years. Why not invest the $2.6b in bonds at 5% and watch it grow to $11b in 39 years. No wonder you keep falling for pyramid schemes," Ndii said.

How Kenyans reacted

TUKO.co.ke compiled some top reactions from Kenyans as shown below:

@otienowill (Willis Evans Otieno) said:

"Tell us the value of an acre of land in JKIA today and once banked how much will it be… watu si wajinga."

@RufasKe, a financial market analyst, said:

"Adani can borrow $2b against it. Use the money to renovate, use the profits to repay the loan in less than 15 years, and remain with a stake in perpetuity."

@jmaithya, an accountant said:

"You carefully omitted perpetual benefits, JKIA is a profit making heavy asset parastatal. Ask that guy to bid for kq."

@Ziloopi asked:

"What's the value of jkia as of now?"

To which @DavidNdii said:

"JKIA profit as is best case scenario is KSh 2b pa. Rule of thumb valuation for utilities of 12X earnings = KSh 24bwhich is opmistic. Id say half that at best. Kengen which is a better company is currently valued at KSh 16b."

@viosam18 said:

"The partnership with Adani Group for JKIA is crucial for modernizing the airport, but no deal has been signed yet. Discussions are ongoing, and no one has been bribed. Kenya stands to benefit significantly from this potential upgrade. This is the fact."

@Oliat_ said:

"Show us the contract details. We discuss with you clause by clause. Hizi rumours na kelele wacha."

@kamaumwando said:

"So why the rush - put up an open tender as you should - let's get the best possible deal 🤝🏿. Otherwise let it be - won't even serve us that much. What will serve us will be mega focus on our brand and rebuilding KQ."

Airport Workers strike over Adani deal

Earlier, TUKO.co.ke reported that hundreds of passengers were left stranded at JKIA as airport workers went on strike.

The strike, which began at midnight on September 11, disrupted travel plans for many passengers, with videos of the chaos being widely circulated online.

Airport workers, represented by the Kenya Aviation Workers Union (KAWU), were protesting the potential leasing of JKIA.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke