Intrusion

Kenya is no stranger to protests, but the recent strike at Jomo Kenyatta International Airport (JKIA) has brought a new level of tension. Airport workers are staging demonstrations in opposition to a deal between the Kenyan government and India's Adani Group, a conglomerate with significant investments across various sectors. At the heart of the protest lies the workers' concern over potential job losses and reduced employment conditions. But how did a seemingly straightforward business agreement ignite such outrage among Kenya’s airport workforce?

The Adani Group

India’s Adani Group is one of the country's largest and most prominent business conglomerates. Founded in 1988 by Gautam Adani, the group started as a commodity trading business and has since expanded into a wide range of sectors, including energy, resources, logistics, agribusiness, real estate, financial services, and defense. The conglomerate is particularly well-known for its dominance in the infrastructure sector, operating ports, airports, and power plants across India and globally.

Gautam Adani, the son of a textile merchant, founded the Adani Group with a vision of tapping into India’s growing trade opportunities. The company began with a focus on commodity trading, specifically agricultural products, before quickly moving into the infrastructure and logistics space, which became its defining strength. By the 1990s, the group was operating its first major port, Mundra Port, located in Gujarat. Mundra Port, today India’s largest commercial port, is a key part of Adani’s infrastructure empire and helped propel the group into the spotlight.

As India's economy liberalized and grew, so did the Adani Group. Its diversification into energy, coal mining, and renewable power helped it capitalize on India’s growing demand for electricity and infrastructure. Over the last few decades, the Adani Group has emerged as a giant not only in the Indian market but also on the global stage, expanding its footprint in sectors like power generation, solar energy, and airport management.

The key business sectors of the Adani Group include the following.

Infrastructure & Logistics. The Adani Group’s core strength lies in its infrastructure and logistics businesses. It operates 13 ports and terminals across India, making it the country’s largest port operator. Mundra Port remains the flagship, handling vast volumes of cargo and playing a crucial role in India’s trade routes. In addition to ports, Adani is a key player in the logistics industry, with investments in warehousing, supply chain management, and transportation.

Energy. The group is one of the largest private sector energy players in India. It operates coal and gas-fired power plants, with a capacity of over 12,000 megawatts, making it a major player in the country’s power generation landscape. Adani has also heavily invested in renewable energy, particularly solar power, with the ambition to become one of the world’s largest renewable energy companies. Its subsidiary, Adani Green Energy, has made significant strides in solar power development, both domestically and internationally.

Airports. Adani Group has recently ventured into the airport sector, operating six major airports in India, including those in cities like Mumbai, Ahmedabad, and Lucknow. The group aims to develop airports as integrated transportation hubs, providing a seamless passenger experience while tapping into the growing demand for air travel in India.

Agriculture and Agribusiness. In its early days, the Adani Group built its reputation as a commodity trader, dealing in agricultural products like wheat and rice. The group continues to have a strong presence in agribusiness, with interests in food processing, edible oil, and cold storage facilities.

Renewable Energy. With the global shift toward cleaner energy, Adani has positioned itself as a leader in the renewable energy space. The group’s solar power initiatives have attracted global attention, particularly its ambitious plans to develop one of the world’s largest solar power parks in Rajasthan. Adani Green Energy, a listed subsidiary, has won multiple bids to set up solar plants across the world, contributing to its growing international reputation in clean energy.

Mining & Resources. Adani is heavily invested in coal mining, both in India and abroad. Its controversial Carmichael coal mine project in Australia has drawn international scrutiny due to environmental concerns. Despite protests, Adani has pushed forward with the project, citing the economic benefits of coal for India’s energy needs. The group is also involved in oil and gas exploration, making it a key player in the broader resources sector.

The Adani Group has seen rapid growth in recent years, driven by its diversified portfolio and strategic investments. The group’s revenue has grown significantly, with its infrastructure and energy businesses leading the charge. As of 2023, the conglomerate’s market capitalization across its listed entities surpassed $220 billion. Key Adani Group companies, including Adani Enterprises, Adani Ports, Adani Power, Adani Green Energy, and Adani Transmission, have performed well on the stock market, attracting both domestic and international investors.

Adani Green Energy, in particular, has seen tremendous growth in market value, as the global investment community increasingly focuses on sustainable energy. This has bolstered the group’s credibility and positioned it as a leader in renewable energy development.

The company has had its share of controversies and challenges. Despite its success, the Adani Group has been mired in controversy. The group’s rapid expansion has raised concerns about its high debt levels. Critics have questioned whether the group is over-leveraged, relying too much on borrowed capital for its ambitious projects. The group has also faced legal challenges related to environmental issues, particularly with its coal mining operations.

The Carmichael coal project in Australia, one of the group’s most controversial ventures, has attracted global protests from environmental groups concerned about its impact on climate change. The project has also faced regulatory hurdles, though Adani has pushed ahead, citing its importance to India’s energy security.

In India, the Adani Group has occasionally been accused of having close ties with the government, leading to allegations of preferential treatment. However, the group denies these claims, stating that its growth has been driven by strategic investments and market opportunities.

Looking ahead, the Adani Group is focused on expanding its renewable energy footprint and enhancing its role in India’s infrastructure development. Gautam Adani, who has been ranked among the world’s wealthiest individuals, has made it clear that sustainability and green energy are at the forefront of the group’s future strategy. The group is also expected to continue expanding its global presence. Its strategic investments in ports, airports, and power generation across countries such as Sri Lanka, Australia, and Indonesia underscore its ambition to become a global infrastructure powerhouse.

Background of the Case

In July, the Kenyan government signed a $2 billion, 30-year lease agreement with Adani Group to overhaul and manage the country’s main international airport. Kenya’s infrastructure, especially at JKIA, urgently needs modernization. With aging terminals, inadequate runways, and growing pressure from increasing passenger numbers, the government saw this deal as a necessary step to bring the airport up to international standards. Under the terms, Adani Group would refurbish the existing facilities, invest in a new terminal and runway, and in return, operate the airport, securing profits from its management for the next three decades.

The deal seemed like a win-win on paper—Kenya would get a modern airport without needing to raise capital or manage the upgrades, while Adani would expand its portfolio of international infrastructure projects. However, not everyone saw it that way. There is also the fact that this deal comes after the airport’s leading career, Kenya Airways, finally makes profits in its revenues after nearly a decade of challenges. Workers at JKIA, backed by their union, began to question the wisdom of handing over control of such a critical national asset to a foreign conglomerate.

Fears of Job Losses and Unfair Terms

For Kenya’s airport workers, the deal represents more than just infrastructure development. They see it as a threat to their livelihood. The workers' union fears that private management by the Adani Group will lead to job cuts, wage reductions, and inferior employment terms. In many countries, when state-owned assets are privatized or managed by foreign entities, the restructuring often results in layoffs and cost-cutting measures. The Kenyan workers believe this could happen at JKIA under Adani’s leadership.

Moreover, the strike comes at a time when economic anxiety is already high in Kenya. Inflation, unemployment, and rising living costs have created an environment where workers are less willing to accept any changes that could potentially worsen their financial situation. Airport workers, feeling that their jobs may be on the line, are not willing to take that risk. The fear of reduced benefits or harsher working conditions under new management has made them adamant in their opposition to the deal.

Legal Challenges and Government Response

The concerns of the workers are not the only obstacles standing in the way of the Adani deal. Just days before the strike, Kenya’s High Court suspended the agreement after two key parties, the Law Society of Kenya and the Kenya Human Rights Commission, filed a petition against it. The petitioners argue that Kenya does not need to outsource the airport to raise funds for its upgrade, claiming that the necessary finances can be mobilized domestically. The court has called for a judicial review of the agreement, casting further doubt on whether the deal will go forward.

Meanwhile, Kenya’s government has defended the deal, stressing that it is essential for the much-needed improvements to JKIA. Officials argue that the current state of the airport is unsustainable and that private sector involvement is the fastest and most efficient way to bring the facility up to par with global standards. President William Ruto, who has faced criticism for his handling of the country’s economic challenges, now finds himself in a precarious position. He must balance the need for infrastructure development with the growing unrest among workers and a legal battle that could stall progress indefinitely.

The Bigger Picture - Economic Struggles in Kenya

The strike is part of a broader wave of dissatisfaction in Kenya over the government’s economic policies. Earlier in the year, President Ruto faced large-scale protests over his proposal to raise taxes on essential goods such as oil and bread. The additional revenue was intended to help pay off Kenya’s staggering $80 billion debt, but the backlash was swift and intense. Many Kenyans, already struggling with high unemployment and inflation, saw the tax hikes as a further burden on their daily lives. The proposal was eventually withdrawn, but it left a lasting sense of frustration and unease among the population.

The Adani deal has become a flashpoint for that frustration. Workers are not just protesting the specifics of the agreement but also voicing their discontent with a government they feel is out of touch with the needs of ordinary Kenyans. In their eyes, handing over control of a major national asset to a foreign company represents a betrayal of national interests. The strikes are as much about the symbolism of the deal as they are about the practical implications for workers' jobs and wages.

What’s Next?

With the deal currently under judicial review and airport workers determined to fight for their rights, the future of JKIA remains uncertain. If the court sides with the petitioners, it could force the government to reconsider its approach to financing infrastructure upgrades, possibly seeking domestic alternatives to foreign investment. On the other hand, if the deal is allowed to proceed, the government will need to carefully navigate negotiations with workers to ensure their concerns are addressed and that protests do not escalate further.

In either case, the controversy over the Adani deal is unlikely to fade quickly. The protests at JKIA have highlighted deeper issues within Kenya—economic struggles, rising inequality, and the clash between development and national sovereignty. As the country continues to grapple with these challenges, the outcome of this strike could set a precedent for how Kenya handles its future partnerships with foreign investors.