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Kenya: Court halts proposed lease of JKIA to Adani

Published

4 months ago

September 10, 2024

Kenya’s High Court has temporarily halted plans to lease the Jomo Kenyatta International Airport (JKIA) to Indian conglomerate, Adani Enterprises.

In an urgent lawsuit certified by the High Court, the Kenya Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) contested the Indian company’s effort to take control of JKIA for a 30-year term.

The two organisations contended that JKIA is a strategic and profitable national asset. As a result, the transaction is irrational and contradicts the values of good governance, accountability, openness, and cautious and responsible use of public funds.

Under the terms of the contract, the Indian company would upgrade the airport, including the construction of a second runway and a new passenger terminal, during a 30-year build-operate-transfer period.

However, KHRC and LSK contended that Kenya can raise the projected $1.85 billion (Ksh238 billion) needed to expand JKIA without leasing the airport for the specified period.

“Thus, the Adani proposal is unaffordable, threatens job losses, exposes the public, is disproportionate to fiscal risk, and offers no value for money to the taxpayer,” lawyer Dudley Ochiel said in the application.

High Court Judge John Chigiti certified the matter as urgent and issued an interim order suspending the deal awaiting the outcome of the litigation.

The judge ordered that the case be heard on October 8 to determine a judgment date.

Mr. Ochiel argued that if KAA and Adani sign the deal and Adani acquires JKIA, the application will be deemed invalid and moot.

The two organisations stated that they had unsuccessfully written to JKIA seeking information under Articles 35(1) and (3) of the Kenyan Constitution and Section 4 of the Access to Information Act.

LSK proposes selling Kenya’s lucrative and functioning JKIA to Adani for $1.85 billion over 30 years.

“Thus, the proposal would deprive the public of, and transfer to Adani, all the current revenues, receipts, expenditures and other financial transactions over JKIA. Although the project is dubbed a Built Operate Transfer, KAA would be handing over an existing and operational airport to Adani,” Mr Ochiel said.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

3 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

4 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”