Adani Enterprises Limited (AEL) has registered a new subsidiary, Airports Infrastructure PLC (AIP), in Kenya.
According to documents obtained by the news desk, the new subsidiary, Airports Infrastructure PLC (AIP), is fully owned by Global Airports Operator L.L.C. (GAO), another company under Adani Enterprises based in Abu Dhabi. READ FULL STORY
Filings at the National Stock Exchange of India Ltd show that the Kenyan subsidiary was officially registered in Kenya on August 30, 2024, under the Kenyan Companies Act, 2015.
According to the company’s profile, AIP’s primary purpose is to take over, operate, maintain, develop, design, construct, upgrade, modernize and manage airports within Kenya.
The company was officially incorporated on August 30, 2024, in Kenya and is a wholly-owned subsidiary of GAO, itself a step-down subsidiary based in Abu Dhabi
Additionally, AIP has an issued share capital of KES 675,000,000, divided into 6750 equity shares, each valued at Ksh 100,000.
The company’s documents indicate that GAO, the parent company, will hold 100% of the share capital of Airports Infrastructure PLC, ensuring full control over the entity.
It was also noted that the incorporation of AIP is conducted in compliance with the Kenya Companies Act, 2015, under which it is legally registered.
At the time of this writing, business operations for AIP are yet to commence.
Adani’s proposed takeover of JKIA
Adani Airport Holdings proposed a significant 30-year deal to refurbish and operate JKIA.
The proposal involves an investment of Ksh 246 billion (approximately $1.85 billion) to be executed in three phases.
The initial phase includes an investment of Ksh 97.5 billion (around $750 million) aimed at constructing a new terminal by 2029.
Under the terms of the proposal, Adani will manage JKIA for the first two years before fully taking over the airport operations for the duration of the 30-year concession.
A notable aspect of the deal is Adani’s intention to reduce the government’s role in air traffic management and security while assuming control over fee collection, tax exemptions, and access to land.
Furthermore, the agreement includes provisions for raising airport charges, with a fixed concession fee starting at USD 47 million (Ksh 6 billion) that is set to increase by 10% every five years.
Adani has asserted that there will be no need for an additional runway until the concession concludes in 2054, and the proposal aims to double airport charges to align JKIA with regional hubs like Addis Ababa, thereby increasing revenue to secure the airport’s future.
Despite the ambitious plans, the proposed deal has encountered significant criticism from various stakeholders, including members of parliament and aviation workers.
Several MPs have called for negotiations to be halted until more details of the deal are disclosed, citing concerns over national security and a lack of transparency.
Additionally, aviation workers recently suspended a planned strike for one week, demanding more comprehensive documentation from the government regarding the Adani deal.
Experts have raised alarms about the implications of transferring ownership of existing JKIA assets to a foreign private company without any sovereign guarantees, deeming it a considerable risk to Kenya and morally questionable to taxpayers who have financed these assets.
