Raila: Canceled Adani deal a major setback for JKIA expansion, Kenya’s regional competitiveness

Former Prime Minister Raila Odinga has expressed concern over the cancellation of a vital airport expansion contract between the Government of Kenya and Adani Group, calling the decision a strategic blunder that threatens to undermine Nairobi’s status as a regional transport and investment hub.

Speaking at the third Executive Retreat convened by President William Ruto in Karen, Mr. Odinga recalled the original awarding of the Greenfield Terminal contract in 2012, which he co-led with the late President Mwai Kibaki. He lamented that years of political meddling had hindered the much-needed modernization of the airport.

“I was very disappointed when we were not able to move on with the airport contract with Adani. That was very unfortunate. Several contracts have been canceled,” said the former Prime Minister.

“If the airport is not expanded, Nairobi will become dormant.” he charged

The Ex-PM noted that the contract, which had initially been revived and awarded to Adani, was once again jeopardised by “politics,” with little regard to its long-term implications for Kenya’s global standing.

Nairobi risks losing its edge

Raila warned that failure to upgrade Jomo Kenyatta International Airport (JKIA) could allow other East African capitals, particularly Kigali and Addis Ababa, to seize regional air transport dominance.

“We have to put up a big airport in Nairobi. If we don’t do it, Rwanda is going to do it, and Kigali will become the hub around here,” he cautioned, adding, “In Addis Ababa, they are already putting up a new big airport. Ethiopian Airlines is now the dominant carrier in the continent. Kenya Airways can do the same.”

Serving a bigger purpose

Expanding on the significance of air transport to national development, the former Prime Minister also called for a shift in how Kenya Airways (KQ) is managed, proposing that it be viewed not merely as a commercial entity but as a strategic asset for national growth.

“Kenya Airways can be the carrier in the continent but we are not doing it and we need to find a way. Look at Emirates airlines, people there do not look at that airline for making profits, it’s a vehicle bringing investors, tourists and shoppers to Emirates. KQ can make losses so long as it’s bringing people to our country,” he said.