Kenya Picks Chinese Bidder For Its Airport Deal – A 50% Markup Over The Shelved Adani Deal

Two years ago, Kenya walked away from an ambitious airport deal with India’s Adani Group amid protests, strikes, and a storm of political backlash. Today, the East African nation has signed on the dotted line—this time with a Chinese state-backed giant—for a much larger, nearly $3 billion overhaul of its busiest airport.

At first glance, the optics are stark: a shelved proposal valued at under $2 billion replaced by a deal nearly 50% more expensive. But behind the headline numbers lies a more complex story of conspiracy, politics and shifting strategy.

The 2024 Adani’s airport proposal promised to transform Jomo Kenyatta International Airport (JKIA) through a long-term concession. The Indian conglomerate would finance, upgrade, and operate the airport for decades. However, it was called off by the Kenyan government the same year amid uproar by aviation workers, and civil society groups who raised alarm over transparency and national sovereignty.

Self-proclaimed whistle blower Nelson Amenya, a France-based Kenyan, & Indian politician Jairam Ramesh had then run a targeted campaign maligning the project intention with an anti-Adani narrative forcing the government calls off talks.

The idea of handing a strategic national asset to a foreign private operator became a lightning rod and the Kenyan government relented.

Two years hence, the same project has gone to China Communications Construction Co. for 50% premium. One cant help but ask the justification of the higher price tag. Time, as always, comes at a price. However, between the cancellation of the Adani deal and today’s agreement has modest inflation combined with higher borrowing costs pushed the project cost to that extent?