Kenyan court halts India’s second-richest man Gautam Adani’s airport lease deal

Omokolade Ajayi -
Key Points
  • Kenya's High Court has suspended Adani Enterprises' $1.85-billion lease proposal for Nairobi's Jomo Kenyatta International Airport.
  • Civil society groups, including the Law Society of Kenya, argued the deal could impact jobs and finances, prompting the court’s review.
  • Adani Group’s expansion in Africa faces uncertainty as legal issues in Kenya challenge its $1.85 billion airport project.

Kenya’s High Court has temporarily suspended a controversial proposal by Adani Enterprises, a subsidiary of the Adani Group led by Gautam Adani, India’s second-richest man. The halted deal involves a 30-year lease to manage and expand Jomo Kenyatta International Airport (JKIA) in Nairobi, East Africa’s largest aviation hub.

The agreement, valued at $1.85 billion, has raised concerns from civil society groups, questioning its fiscal viability and impact on Kenyan workers. The Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) filed a joint application urging the court to block the agreement.

According to court documents, the LSK and KHRC argued that Kenya could independently raise the funds necessary to modernize JKIA without involving foreign entities. They highlighted risks associated with the deal, including potential job losses and the burden of long-term financial commitments on taxpayers.

Kenyan court blocks Adani lease

LSK President Faith Odhiambo confirmed the court’s decision to grant permission for a judicial review of the proposed lease. “The court has issued a stay order prohibiting any action on the Adani proposal for JKIA until the case is resolved,” Odhiambo said. Both Adani Group and the Kenya Airports Authority have declined to comment, citing the ongoing legal process.

This legal action comes after Adani Enterprises launched Airports Infrastructure PLC (AIP), a new subsidiary aimed at expanding the company’s footprint in Kenya’s airport sector. The move aligns with the broader growth strategy of Adani Group, which boasts a diverse portfolio including power, gas, energy, ports, and renewable energy projects.

Adani expands Africa infrastructure investments

Gautam Adani, whose net worth is estimated at $100 billion, continues to steer the group’s expansion across Africa. In addition to the Kenyan venture, the Adani Group recently secured a 30-year concession agreement with the Tanzania Ports Authority to manage Container Terminal 2 at Dar es Salaam Port, and committed $1.22 billion to enhance Kenya’s power infrastructure in partnership with Africa50.

The suspension of the JKIA deal raises questions about the Adani Group’s broader ambitions in East Africa, a region where the conglomerate has invested heavily in logistics, energy, and infrastructure. Adani’s growing presence underscores its intent to solidify a dominant role in Africa’s rapidly evolving infrastructure landscape, while the legal proceedings in Kenya signal a significant hurdle in its plans.