Airports manager seeks new investor for JKIA VIP terminal after Adani flop

Jomo Kenyatta International Airport

Security checks at the entrance of the Jomo Kenyatta International Airport in Nairobi.

Photo credit: File | Nation Media Group

The Kenya Airports Authority (KAA) has launched a search for an investor to build and manage a state-of-the-art terminal at the Jomo Kenyatta International Airport (JKIA) that will cater exclusively to Very Important Persons (VIPs).

The airports manager says in a tender document that the services to be offered at the terminal include private passport control, exclusive duty-free shopping, personalised assistance throughout the journey, private check-in, concierge services, customs clearance, luxurious lounges, premium food and beverage, and spa and wellness services.

The search for the new investors comes just weeks after President William Ruto cancelled the takeover of JKIA, Kenya’s largest airport, by India’s Adani Group following allegations of bribery against the firm.

Adani had promised to inject $2 billion (Sh258 billion) in JKIA to upgrade its infrastructure and manage it over a period of 30 years under a public-private partnership (PPP).

KAA has now decided to move forward with the search for a new investor to build a commercially important persons (CIPs) terminal at JKIA to serve VIPs, business executives, celebrities and individuals seeking a premium travel experience.

The agency believes that the new 3,000 square metre terminal, which will occupy a maximum of three floors, will open a new revenue stream for the airport, which has fallen into disrepair over the years.

According to KAA, the new CIP terminal will be built with all the requisite amenities to cater for VIPs. The contract also includes the construction of a 12,000 square metre concrete apron for aircraft servicing the terminal.

“In a bid to cater to the different cadre of travellers, the airport is seeking expressions of interest for the development and management of a Commercially Important Persons (CIP) Terminal,” KAA said in the tender document.

“The specialised designed terminal is meant to offer exclusive services to travellers seeking enhanced comfort, privacy, and efficiency. It will cater to VIPs, business executives, celebrities, and individuals desiring a premium travel experience.”

Further, the CIP terminal will host parking facilities, executive reception areas, premium lounges, private meeting rooms, business centres, fine dining options, spa/wellness facilities, hotels, banks, offices and personal concierge services.

Bidding for the construction and management of the CIP terminal closes on December 17, 2024. According to KAA, only firms that have a credit line of at least $8 million (Sh1.03 billion) will be shortlisted.

The government has been relentless in its pursuit of new private investors for JKIA, arguing that the airport needs significant investments that cannot be funded by the government.

The cancellation of the Adani deal has thrown KAA back to the drawing board to find an investor to take over the running of the airport, which is one of the largest in Africa.

The airport handled 8,210,100 passengers last year, which was a 25.2 percent increase from 2022. JKIA accounted for 67.3 percent of all air passengers in Kenya in 2023.

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