Kenya Airports Authority (KAA) has admitted it had received an investment proposal from an Indian firm to operate Jomo Kenyatta International Airport (JKIA) amid controversy.

KAA Acting MD and CEO Henry Ogoye said Adani Airport Holdings Limited would build a new passenger terminal, a second runway and upgrade the current facilities.

In a statement on Wednesday, Ogoye said the proposal, which had been shrouded in mystery, would be subjected to technical, financial, and legal reviews as legally required.

“Kenya Airports Authority (KAA) received an investment proposal under the Public Private Partnerships Act 2021 from the Adani Airport Holdings Limited, a key airport operator, to invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA," said Ogoye.

He said the deal was preceded by a nod by the cabinet of a JKIA Medium Term Investment Plan covering the upgrade of the passenger terminal building, runway, taxiway and apron.

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The KAA boss allayed fears of job losses if the deal sails through assuring stakeholders the process would seek clearance from the National Treasury, Attorney General, and Cabinet.

However, this comes a day after Prime Cabinet Secretary Musalia Mudavadi denied any plans by the government to sell off JKIA, a significant and strategic Kenyan national asset.

He was appearing before the National Assembly Budget and Appropriation Committee on Tuesday, days after Kisii Senator Richard Onyonka blew the lid on the planned secret deal.

“Let me put it clearly that the Jomo Kenyatta International Airport is not on sale. It's a public asset and a strategic asset. If it were to be sold, you can only do it after a full public process that Parliament endorses," Mudavadi told MPs on Tuesday.

The PCS termed allegations on the secret pact as not being factual.

“What we need to appreciate is we need to modernize our airport and that needs resources to create new terminals. Going forward KAA must look at its investment carefully,” he added.

While raising the matter before the Senate, Onyonka argued that the contract between KAA and the Spanish firm ALG, serving as the transaction advisor, was not transparent.

The Kisii senator also sought clarification on the alleged agreement with Adani Commercial for a 30-year concession to develop and transfer the airport's assets.

“In the statement, the committee should state the reasons for the government plans to avail free land to the company to build a city-side development on public land which may lead to land issues in areas surrounding JKIA,” argued Onyonka.

JKIA, which was constructed in 1978, has faces numerous challenges leading to the many failed attempts by previous administrations to upgrade and modernize its infrastructure.

It is believed such upgrades would boost the airport’s competitiveness as the regional hub and in the process handle more passengers and cargo raking in more revenue for Kenya.

JKIA has been recently harshly criticised for numerous incidences of leaking roofs, inadequate drainage, and insufficient shelter, particularly during the heavy rains in March.