Adani Enterprises has formally established a Kenyan subsidiary named Airports Infrastructure PLC (AIP) in its latest bid to take over operations at Jomo Kenyatta International Airport (JKIA) in Nairobi, Business Daily Africa reported on September 2.

The new entity was incorporated on August 30, 2024, according to a filing with the National Stock Exchange of India.

Adani Enterprises, a major Indian conglomerate with diverse business interests including infrastructure, aims to transform JKIA through a significant investment and management proposal. It has faced considerable local opposition from aviation sector workers, who have staged protests and strikes.

The formation of AIP, which is fully owned by Adani through its Abu Dhabi-based subsidiary Global Airports Operator, marks a strategic move to secure a 30-year concession for JKIA.

The project entails a major overhaul of the Nairobi airport, including building new terminals and taxiways, with substantial investment phases planned. The first phase, costing $750mn, aims to build a new terminal and associated infrastructure by 2029, while a subsequent $92mn phase will further enhance the airport's facilities by 2035. An additional $620mn is earmarked for further development, integrating new facilities with existing structures, the East African reported on September 2.

Despite the substantial financial commitment, Adani's proposal has faced backlash. On September 2, Kenya Airports Authority (KAA) workers staged a demonstration at JKIA, voicing concerns about job security and the impact of the deal on local employment. The protest disrupted flights and was fuelled by fears that the Adani deal, part of a public-private partnership (PPP), could favour foreign workers over Kenyan staff, Citizen Digital reported on September 2.

In response to the growing controversy, President William Ruto defended the PPP model, highlighting the need for modernisation at JKIA. He criticised the current airport infrastructure, saying:

“Let’s be honest Kenyans. The airport we have in Nairobi is made of canvas. It is a temporary structure we built almost 7 years ago,” Ruto said. “Ethiopia has a brand new airport, Rwanda the same, and this is the reason why we need to work with investors to have a new airport in Nairobi.”

The aviation workers staged their protest early in the morning, despite a declaration by Moses Ndiema, Secretary General of the Kenya Aviation Workers Union (KAWU), who had announced a seven-day delay in the planned strike to "review the lease agreement."

Ndiema insists that the “intended sale of JKIA” to the Indian company does not meet legal requirements for public participation and excludes union members, who are key stakeholders, the Statesman reported on September 3.

As Adani Enterprises continues to push forward with its plans, the situation remains dynamic, with significant implications for both the future of JKIA and the broader infrastructure investment landscape in Kenya.