Adani Enterprises set up a new venture in Kenya to manage Nairobi's Jomo Kenyatta International Airport (JKIA) as part of its global expansion strategy. The newly formed entity, Airports Infrastructure, is set to take over operations at the airport, with plans to invest $750 million by 2029 for terminal and taxiway upgrades. An additional $92 million will be allocated for further improvements by 2035. This marks Adani’s first airport venture outside of India, where it operates over six airports.
The announcement has triggered protests from Kenyan transport workers, who are concerned about potential job losses. Approximately 10,000 members of the Kenya Aviation Workers Union had planned a strike on August 19 to oppose the deal, which involves Adani's Abu Dhabi-based subsidiary, Global Airports Operator.
The Kenyan government defends the agreement, stating that the investment is crucial for upgrading JKIA, one of Africa’s busiest airports. The airport frequently faces power outages and infrastructure issues that need addressing.
In response to the protests, Congress party leader Jairam Ramesh expressed concerns that the situation could lead to broader discontent against India. Ramesh highlighted the potential for protests to escalate into anti-India sentiment, given the prominent role of the Adani Group in the deal.
Despite the unrest, Kenya’s government emphasizes the necessity of the refurbishment for JKIA, which plays a key role in the region’s aviation sector.
Adani Enterprises is known for expanding its business ventures and has plans to list its airport operations under Adani Airport Holdings on stock exchanges by 2028.
In addition to Adani's activities, other Indian companies are also making their mark in the international airport sector. GMR Group, based in Hyderabad, operates Mactan Cebu International Airport in the Philippines and has secured deals to manage airports in Greece and Indonesia.
This development in Kenya is part of Adani's broader strategy to grow its international presence in airport management, despite facing both domestic and global challenges.
More To Read:
Adani Ports Acquires 80% Stake in Astro Offshore Group for $185 Million
Hurun Rich List-2024 Revealed: Gautam Adani Leads India's Growing Billionaire Community
Adani Sets Up New Power Venture in UAE, Focuses on Energy and Infrastructure Investments