Raila Odinga 'very disappointed' by collapse of Adani deal

ODM leader Raila Odinga speaks during the third National Executive Retreat held in Kajiado on June 20, 2025. [PCS]

ODM leader Raila Odinga has described the cancellation of the controversial Adani airport deal as "unfortunate," warning that the move risks setting back Kenya's aviation sector as regional competitors make key infrastructure investments.

Odinga criticised what he called the politicisation of the proposed lease, saying repeated cancellations of projects aimed at modernizing Jomo Kenyatta International Airport (JKIA) have hindered its potential.

"I was very disappointed when we were unable to move forward with the airport contract. That was very unfortunate," said Odinga, while at the third National Executive Retreat in Kajiado on Friday.

Raila Odinga: I was very disappointed when the Adani airport deal did not go through. pic.twitter.com/Gqg2k3GiTK - The Standard Digital (@StandardKenya) June 20, 2025

The ODM leader recalled that the Greenfield Terminal Project, initially awarded during the grand coalition government with late President Mwai Kibaki in 2012, was later cancelled, re-awarded to the same contractor, and then reversed again due to disagreements.

"We awarded the Greenfield airport contract before we left office, with Kibaki, in 2012. That contract was cancelled before it was again given to the same contractor. This was again reversed because of a disagreement," he said, adding, "when we brought Adani, they brought this politics, and again the contract was cancelled."

The Greenfield Project aimed at expanding JKIA's capacity but stalled.

In November last year, President William Ruto suspended the Sh240 billion, 30-year lease of the airport to India's Adani Group amid public backlash.

Odinga on Friday warned that Kenya could lose its status as East Africa's leading aviation hub if current trends persist, noting major investments by neighboring countries.

He gave the examples of Ethiopia and Rwanda, where new airports are coming up and are expected to boost the fortunes of Ethiopian Airlines and RwandAir, much to the disadvantage of Kenya Airways.

"If that is not done, Nairobi will become dormant. Addis Ababa is putting up a new big airport, and the city is going to be the new hub while Ethiopia Airlines remains the dominant airline on the continent. KQ can do the same," said Odinga.

He further added that while profitability is an important consideration, the national carrier should be viewed as a strategic asset for flying in travellers, including tourists and investors who inject money into the country's economy.

This model, he argues, has worked for the United Arab Emirates through its world-famous Fly Emirates brand.

"We need to put up a big airport in Nairobi. If we don't, Rwanda will do it, making Kigali the next hub. We can turn Nairobi into the Dubai of Africa," he advised.