The Public Investments Committee on Commercial Affairs & Energy, chaired by Hon. David Pkosing (Pokot West), on Tuesday directed the Kenya Airports Authority (KAA) to suspend all further engagements with Adani group until a special audit of the tender award process is conducted.

During a Committee meeting, Hon. Pkosing expressed his disappointment with KAA, highlighting a significant erosion of public trust regarding the single-source award to Adani.

 “This Committee cannot avoid a special audit. There is a high level of distrust in this country. As implementers of government policy, you must recognize this reality. If you continue down this path, JKIA will suffer.” he said.

Hon. Pkosing emphasized the importance of public involvement as stipulated by the constitution of Kenya 2010, saying that Kenyans are clever and privy to any matter that concerns them.

“We must not jeopardize our country with projects that raise concerns over public participation. How can Kenyans trust a report concluded in just one week?” he asked.

The Committee Chairperson also expressed appreciation for KAA workers for raising alarm over the matter and urged transparency in the ongoing dealings with Adani, noting that some managing directors are hesitant to act for fear of scrutiny.

KAA's Acting Chief Executive Officer, Mr. Henry Ogoye, faced heavy questions from the Committee about how Adani secured the tender.

The Committee outlined several key areas for the audit that include examination of the procurement process for Adani, Assessment of the estimates and scope of the Adani project, evaluation of whether the proposed Investment Plan (PIP) is the most effective way to utilize public resources.

Members also outlined what they called critical areas of clarification including the future of KAA staff following Adani's engagement and also understanding how private management of KAA will collaborate with the national airline and other airport operators.

The Vice-Chairperson, Hon. (Dr.) Lilian Gogo (Rangwe) observed that the management was uncomfortable in dealing with the Adani matter urging them to stand for the truth and secure public resources.

Mr. Ogoye explained that the KAA infrastructure is outdated and referenced two feasibility studies commissioned by the government in 2021.

He said that one focused on the National Aviation Policy and the other on a Medium-Term Investment Plan.

He said that both reports were delivered in December 2022.

He further elaborated that due to the high-level nature of the initial studies, a detailed feasibility study on JKIA was commissioned, which was completed on February 16, 2024.

Adani Airport Holdings of India subsequently submitted a PIP, which was evaluated and approved by the committee, leading to negotiations that began on June 4.

“The entire process has been conducted lawfully, culminating in negotiations.” He said.

Ogoye stated that the entire process has been caught with legal requirements saying that he as KAA accounting officer has not signed any agreements with Adani so far, as there are currently three lawsuits halting the process.

“If there’s any contract to be signed, it is to be signed by me and as at now, I have not appended my signature on anything, “assured the MD.

Hon. Marianne Kitany (Aldai) sought clarification on the 50,000 USD paid to the National Treasury inquiring how KAA had arrived at the payment which she indicated that it was a sign of securing the tender. However, the MD said that the amount was an evaluation fee. 

On his part, Hon. (Dr.) Keynan Adan (Eldas) raised concerns on what he called increased cases of embezzlement of public resources.

“We are losing everything in our country; our stature, our eminence, who’s responsibility is this? the reason why we have a constitution is to ensure that there’s public participation on any critical decisions concerning public resources. JKIA is Kenya and Kenya is JKIA. Messing up JKIA is Messing up Kenya and we will not allow it”, he warned.

Hon. (Dr.) Keynan urged the management of KAA to be fair and rescue the country’s resources.

The Committee will convene in 14 days to look into the special audit report from the Office of the Auditor General on the matter to ensure accountability and transparency in handling the project.