Former Prime Minister Raila Odinga has expressed disappointment over the collapse of the Adani deal to expand and manage the Jomo Kenyatta International Airport (JKIA), saying the project would have transformed Nairobi into a regional economic hub.

Speaking during the second day of the National Executive Retreat in Karen, Nairobi, Raila said the cancellation of the deal was a major setback and blamed politics for derailing a critical project.

“I was very disappointed when we were not able to move on with the airport contract that was very unfortunate,” he said.

Raila revealed that the first JKIA expansion contract was awarded while he served as Prime Minister, but was cancelled after the grand coalition government left office. He said the same contractor was later re-engaged but the deal collapsed again due to disagreements.

“We had awarded the Greenfield airport contract before we left government with Mwai Kibaki in 2012. That contract was cancelled, then it was given to the same contractor but then again cancelled because of disagreements. When we got to Adani they brought politics and the contract was cancelled,” Raila said.

He warned that unless urgent action is taken, JKIA risks stagnation while other regional airports grow into global hubs.

“If that is not done Nairobi will just become dormant. Look at Addis Abba, they are going and now putting up a new big airport and it's going to be the hub around,” he added.

The Sh637 billion deal would have allowed India’s Adani Group to manage both JKIA and Ketraco for 30 years, with the airport upgrade alone projected to cost at least Sh238 billion. The contract was cancelled on the orders of President William Ruto.

Raila, who attended the retreat alongside Cabinet Secretaries, Principal Secretaries and senior government officials, said failure to invest in infrastructure would push Kenya behind its neighbours.

He cited Emirates Airline as an example of how aviation can be used to attract investments and boost tourism, even if the airline itself is not profitable.

“Look at Emirates, people there do not look at the airline for profits, it is basically a vehicle bringing investors, shoppers and tourists to the emirates,” he said.

“KQ can be making losses, as long as it’s bringing people to our country. Put up a big airport in Nairobi, if we don’t do it, Rwanda is going to do it and Kigali can be the hub around here,” he warned.