Kenya to raise $1.85bn from JKIA deal with Adani Group, but critics fear fraud and tax evasion.

Kenya’s proposed $1.85 billion agreement to transfer control of Jomo Kenyatta International Airport to India’s Adani Group has sparked concerns about fraud, tax evasion, and the potential for a monopoly, amidst significant global attention and domestic dissent. The plan to cede operations of Nairobi’s Jomo Kenyatta International Airport to Adani Airport Holdings Limited is intended to remedy infrastructural deficits. However, numerous accusations of fraud, money laundering, and tax evasion associated with the investor might subject Nairobi to severe international scrutiny.

The Adani Group, an extensive conglomerate worth over $127 billion, maintains a commanding monopoly in India’s private sector and is extending its reach across Asia and Africa via offshore shell companies, some benefiting from favorable policies and tax arrangements.

These issues present considerable warning signs that Kenyan authorities need to heed, particularly as the nation was recently placed on the Financial Action Task Force’s (FATF) grey list, attracting its vigilant oversight.

A report by Hindenburg Research in January 2023 branded the conglomerate as the “biggest corporate scam in history,” citing alleged stock manipulation, involvement in tax havens, and undisclosed bank accounts. The Adani Group has refuted these claims.

Nonetheless, the heightened international focus on the nation’s assets could impact air travel connections and collaborations between Kenya’s national airline and other carriers, especially as Nairobi’s role as a regional aviation hub is challenged by neighboring countries.

Christopher Kirigua, Director General of the Public Private Partnership (PPP) Unit within the National Treasury, stated, “We welcome the intense global scrutiny. However, our primary focus should be on national examination, which is Kenya’s foremost concern.”