APA Insurance has today presented Kenya Airports Authority (KAA) with a KSh1.47 billion compensation cheque. This final cheque fully settles the claim from the August 7, 2013 fire at the Jomo Kenyatta International Airport (JKIA). The JKIA Fire gutted parts of the regional travel hub in 2013.
This brings the total compensation for the inferno by the insurer, which gutted the international arrivals terminal at JKIA, to KSh1.97 billion. In December 2013, APA presented to KAA an interim KSh500 million payout to facilitate the reconstruction of the new arrivals terminal at JKIA, East and Central Africa’s busiest airport.
The presentation of the final compensation cheque follows receipt of full documentation from the loss adjusters using independent data from specialist forensic experts, engineers and quantity surveyors to evaluate the claim. Investigations into the cause of the JKIA Fire concluded it was due to an electrical fault.
Already, KAA has invited bids for a contractor to bring down the damaged international arrival terminal to pave way for its reconstruction, alongside the redesign for terminals 1, 2 and 3. The authority is also in the process of shipping an interim terminal, besides finalizing work on Terminal 4. Construction of the Greenfield terminal, with a handling capacity for 20 million passengers has also kicked off.
APA Insurance through the support of its reinsurers: Swiss Re, Africa Re, Kenya Re, Zep Re and East Africa Re, has settled the total amount of the loss. Given the broad reinsurance programme, APA’s balance sheet will remain strong despite the payment as it seeks to set a precedent in determining major losses experienced by our clients.