Flames and black smoke billow from the burning Jomo Kenyatta International Airport in Nairobi.
Flames and black smoke billow from the burning Jomo Kenyatta International Airport in Nairobi.

Kenya's main airport destroyed in fire, closing east Africa's main transport hub



NAIROBI // A fire destroyed Kenya's main airport yesterday, forcing the indefinite suspension of international passenger flights and choking a vital travel gateway to east Africa.

The blaze lit up the early morning sky, the billowing clouds of black smoke engulfing the terminal buildings visible from miles away.

The intense heat repeatedly drove back firefighters who battled for five hours to put out the fire, the worst on record at Jomo Kenyatta International Airport, east Africa's busiest.

Michael Kamau, cabinet secretary for transport said an investigation into the fire would start immediately but that it was too early to speculate on the cause.

The blaze stranded thousands of passengers at the airport and exporters of perishable produce, mainly flowers, feared for their export-driven business, a leading source of foreign exchange for Kenya alongside tea exports and tourism.

"This is disastrous," said Jane Ngige, chief executive officer of exporters association Kenya Flower Council.

There were no immediate reports of casualties from the fire, which started in the arrivals and immigration area. Business travellers and tourists were diverted to other airports in the region.

Shares in Kenya Airways, which uses the airport as its main hub, fell 2 per cent. Foreign carriers using the terminal include Emirates, British Airways, Qatar, KLM, Turkish Airways, South African Airlines and Ethiopian airlines.

Kenyan authorities said domestic flights and international cargo flights would resume later yesterday. Plans for international flights were to be announced later.

"Right now we've allowed the cargo to come in. Fruits, flower are coming in and are being processed. We hope we will be able to resume domestic flights," Kamau said.

Inside the gutted building, neat lines of metal trolleys with melted plastic handles were the only clear reminder that the building - whose roof partially collapsed - was once an airport terminal.

Some passengers searched for their luggage amid the charred ruins while outside, staff from Western embassies waved their national flags to attract passengers looking for a route home or a place to stay.

The fire coincided with the 15th anniversary of a twin attacks by terrorists on the United States Embassy in Nairobi and Dar es Salaam, the commercial capital of neighbouring Tanzania.

But security analysts said there was as yet no indication of any link to Islamist militants that Kenyan soldiers are battling in neighbouring Somalia as part of an African Union force.

"It doesn't bear the hallmarks of an Al Shabaab operation but one never knows. It might be something new," said a regional security analyst.

The fire was a major blow to Kenya right at the start of the busiest period of the tourism season, a key sector for the Kenyan economy and an important source of foreign currency earnings.

Tourists to the world famous Masai Mara Game Reserve had cancelled their bookings, tour operators said.

Flights were diverted to Kenya's port city of Mombasa. Plans were underway to divert other flights to Eldoret in the north-west and Kisumu in the west, as well as to neighbouring countries including Uganda, Tanzania and Rwanda.

Passengers faced bus trips of hundreds of kilometres to reach the Kenyan capital.

"I had two appointments today in Nairobi which I have missed because of this," Susan Eklow, 42, from Sweden told Reuters in Mombasa.

"We haven't been told anything except to hang around here as a solution was sought," said Muses Heuwaggen, 45, a German tourist in Mombasa headed to Naivasha in the scenic Rift Valley.

By early afternoon, passengers began to grumble that minimal assistance was being offered. Passenger Medr Gudru, a 66-year-old German, had hoped to fly home yesterday but the fire stranded him with no information, he said.

"This is too much. It was very nice here but this is just a mess," he said.

Kenya Airways, the country's flagship carrier, diverted five flights to Mombasa and said all of its transit passengers were being moved to hotels. The airline reported that one passenger and one employee suffered from smoke inhalation.

As in many countries in East Africa, public sector services like police and fire units in Kenya are hobbled by small budgets and outdated or no equipment. Many of the responding units to the fire were from private security firms.

There may not have been fire engines available to respond, said some witnesses. The country's largest newspaper, The Daily Nation, reported last month that Nairobi County does not have a single working fire engine, and that three fire engines were auctioned off in 2009 because the county could not afford repairs.

"It is a disgrace that the entire Nairobi County does not have a public fire engine in working condition," the paper wrote in an editorial last month.

The paper said the collapse of the fire department means responses to disasters is in the hands of private companies and the military.

* Reuters with additional reporting by Associated Press

The specs

Engine: Dual synchronous electric motors
Power: 660hp
Torque: 1,100Nm
Transmission: Single-speed automatic
Touring range: 488km-560km
Price: From Dh850,000 (estimate)
On sale: October

MATCH INFO

Karnatake Tuskers 114-1 (10 ovs)

Charles 57, Amla 47

Bangla Tigers 117-5 (8.5 ovs)

Fletcher 40, Moores 28 no, Lamichhane 2-9

Bangla Tiger win by five wickets

COMPANY PROFILE

Name: Kinetic 7
Started: 2018
Founder: Rick Parish
Based: Abu Dhabi, UAE
Industry: Clean cooking
Funding: $10 million
Investors: Self-funded

Other ways to buy used products in the UAE

UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.

Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.

Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.

For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.

Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.

At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

COMPANY PROFILE

Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside

Brief scores:

Everton 2

Walcott 21', Sigurdsson 51'

Tottenham 6

Son 27', 61', Alli 35', Kane 42', 74', Eriksen 48'​​​​​​​

Man of the Match: Son Heung-min (Tottenham Hotspur)

COMPANY PROFILE

Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

What is an ETF?

An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.

There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.

The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.

There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.

While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash. 

Company Profile

Company: Astra Tech
Started: March 2022
Based: Dubai
Founder: Abdallah Abu Sheikh
Industry: technology investment and development
Funding size: $500m

The pillars of the Dubai Metaverse Strategy

Encourage innovation in the metaverse field and boost economic contribution

Develop outstanding talents through education and training

Develop applications and the way they are used in Dubai's government institutions

Adopt, expand and promote secure platforms globally

Develop the infrastructure and regulations

UAE Tour 2020

Stage 1: The Pointe Palm Jumeirah - Dubai Silicon Oasis, 148km
Stage 2: Hatta - Hatta Dam, 168km​​​​​​​
Stage 3: Al Qudra Cycle Track - Jebel Hafeet, 184km​​​​​​​
Stage 4: Zabeel Park - Dubai City Walk, 173km​​​​​​​
Stage 5: Al Ain - Jebel Hafeet, 162km​​​​​​​
Stage 6: Al Ruwais - Al Mirfa, 158km​​​​​​​
Stage 7: Al Maryah Island - Abu Dhabi Breakwater, 127km