The Kenya Airports Authority is set to face asset auction over a Sh 36.9 billion debt. Several cases have been filed in different courts by contractors claiming the debt is a result of the cancellation of contracts, variation of contracts, interests on delayed payments and accrued penalties.
The cases are at different stages at the arbitration tribunals, the High Court and the Court of Appeal. The authority owes 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 Sh64 billion.
The contract was cancelled for lack of funds, even though payment of Sh4.2 billion had been made. World Duty Free is also seeking compensation of Sh4.93 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.
Sinohydro Corporation is also seeking Sh1.5 billion from KAA for the construction of a Sh6.2 billion runway and rehabilitation of aircraft pavement at the JKIA. Kenya Revenue Authority (KRA) is also on the list of claimants, demanding a Sh4.2 billion tax claim.
Others owed by KAA include Patrick T Kanyuira (Sh1 billion), Doch Company Ltd (Sh955 million), Mitu-Bell Welfare Society and two others (Sh 766.3 million) and Relief and Mission Logistics (Sh719.7 million). Chinese firm Catic has filed three claims of Sh 939 million, Sh 882 million and Sh 486 million, while Baseline Architects and three others are demanding Sh 404 million. China Overseas Engineering Group is claiming Sh 388 million, Machiri Limited Sh 388 million, Queens Quay Architects International Inc. Sh 335 million and Moniks Agencies Sh 319 million