KAA wants Sh27 billion Qatari-JKIA deal cancelled

JKIA main entrance

The Kenya Airports Authority (KAA) has asked Cabinet to cancel a Sh27 billion contract for the construction of an expo and convention centre.

The parastatal’s board had asked Cabinet, which approved the contract between Jomo Kenyatta International Airport (JKIA) and Afro Asia Investment Corporation of Qatar in January 2009, to cancel it, KAA CEO Stephen Gichuki told a parliamentary committee yesterday.

Under the contract, KAA was to provide 90 acres at JKIAfor the construction while Afro Asia Investment Corporation would finance the project.

The investment was to be handed over to the Authority after an 80-year concession period, with Sh80 million + 50% of the licence fees going to them annually.

According to Mr Gichuki, the Authority’s main worry was that the firm had held up the construction, which was scheduled to commence 18 months after the signing of the contract.

“We are standing firm because they haven’t started construction. However, we can’t cancel the contract as KAA because it had been approved by them (Cabinet),” said Mr Gichuki.

The committee asked Mr Gichuki to provide the letter to the Cabinet, which would have been conveyed through Transport Minister Amos Kimunya.

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