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Kenya Airports Authority Faces Auction Over Ksh37 Billion Debt

Alex Gitari
KAA managing director Alex Gitari. [PHOTO/ COURTESY]

Contractors are now eying assets owned by the Kenya Airports Authority (KAA) over a Ksh36.9 billion debt that the state agency has been unable to pay.

Several cases have been filed in different courts by the contractors, now at different stages at the arbitration tribunals, the High Court and the Court of Appeal.

The debt is a result of the cancellation of contracts, variation of contracts, interests on delayed payments and accrued penalties.

Ksh17.61 is owed to Chinese firms Anui Construction Engineering Group and China Aero-Technology International Corporation (Catic) over the cancellation of contract for the construction of a greenfield terminal at Jomo Kenyatta International Airport (JKIA) at a cost of Ksh64 billion.

The contract was cancelled for lack of funds, even though payment of Ksh4.2 billion had been made.

World Duty Free is also seeking compensation of Ksh4.93 billion following a flopped deal of 1989 deal where they had been promised duty-free shops at the airports operated by KAA. The amount was awarded by courts in 2012, but KAA says it has made an appeal.

Read: Alex Gitari Confirmed as KAA Managing Director

Sinohydro Corporation is seeking Ksh1.5 billion from KAA for the construction of a Ksh6.2 billion runway and rehabilitation of aircraft pavement at the JKIA.

Kenya Revenue Authority (KRA) is also on the list of claimants, demanding a Ksh4.2 billion tax claim.

Others owed by KAA include Patrick T Kanyuira (Ksh1 billion), Doch Company Ltd (Ksh955 million), Mitu-Bell Welfare Society and two others (Ksh766.3 million) and Relief and Mission Logistics (Ksh719.7 million).

Chinese firm Catic has filed three claims of Ksh939 million, Ksh882 million and Ksh486 million, while Baseline Architects and three others are demanding Ksh404 million.

China Overseas Engineering Group is claiming Ksh388 million, Machiri Limited Ksh388 million, Queens Quay Architects International Inc. Ksh335 million and Moniks Agencies Ksh319 million.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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