MPs probe KAA’s Sh130 million land omission and Sh113.9 million revenue mismatch

Kenya Airports Authority (KAA) officials were on Wednesday put to task by lawmakers over questionable land dealings and a revenue mismatch running into millions during a parliamentary session on Wednesday, as concerns grew over the management of public assets.

The Public Investments Committee on Commercial Affairs and Energy summoned KAA Acting Managing Director Nicholas Bodo to explain gaps in the Authority’s financial reports for the years 2018/2019 to 2021/2022.

The session, chaired by Pokot South MP David Pkosing, focused on unaccounted land parcels and disparities in parking revenue collections.

A major concern was the unexplained omission of a 3.29-acre plot, valued at Sh130 million, from KAA’s lease records. The land, known as LR No. 9042/668, was reportedly handed over to the Kenya Police Service.

However, auditors flagged the absence of formal communication or paperwork to confirm the transaction.

Although the asset appeared in KAA’s books for 2019/2020, a letter from the Executive Office of the President dated January 19, 2023, had frozen further lease processing.

Bodo told the committee that the Authority was still trying to get formal clearance to complete the lease, saying the process would follow internal protocols.

Pkosing directed that the Officer Commanding Police Division (OCPD) for Embakasi East be summoned to clarify the police’s interest in the disputed land.

Questions also arose around the Kisumu International Airport expansion.

While auditors confirmed that KAA paid Sh165 million for the land, the full value of Sh190.7 million could not be verified due to missing records.

There was also no sign that the process to transfer land titles had begun.

The issue was further complicated by the existence of two different title deeds; Kisumu Airport L.R. No. Municipality/Block No. 1/8 and No. 1/21 — each showing different land sizes.

Responding to the inquiry, Bodo explained, "One of the titles was surrendered following an amalgamation process that was acknowledged by the Commissioner of Lands."

To address the uncertainty, the committee said it would visit Kisumu to verify the land’s status. The inspection will include school structures reportedly built on the airport property.

Another case involved a 0.867-acre piece of land in Embakasi Village worth Sh4.3 million. Nearly half of it — 0.47 acres — was said to have been wrongly allocated to a third party.

Despite a court ruling that cancelled the title and returned ownership to KAA, an appeal is still pending at the Court of Appeal.

Bodo said the Authority had made several follow-ups with the National Land Commission, including a reminder sent on April 19, 2024, but there had been no response.

The committee also tackled a major discrepancy in parking revenue collections at Jomo Kenyatta International Airport (JKIA).

A mismatch of Sh113.9 million was discovered between data from Kenya Airports Parking Services (KAPS) and KAA’s electronic point-of-sale (ePOS) system.

While KAPS reported revenue of Sh191 million, KAA’s system showed only Sh77 million.

Bodo attributed the gap to system delays and inconsistencies, explaining that KAPS operates two separate databases — one for internal use and the other for the ePOS system.

The setup raised concerns among lawmakers about data reliability.

Although KAA has begun reconciling the figures, a complete report is yet to be provided.

The committee highlighted that the situation violated sections 64(1), 139(1), 143(2), and 23(1) of the Public Finance Management (National Government) Regulations, 2015, and called for better accountability in the handling of public funds and property.

Pkosing instructed the Auditor-General to establish the revenue-sharing model used by KAPS and asked for bank statements from both KAA and KAPS to be reconciled.

"Confirm who the collector printer is, investigate possible criminal liability on the part of both KAPS and KAA regarding revenue collection, and clarify why KAA has not flagged any suspected under-declaration. If they have, submit all supporting evidence by June 3rd," the Chairperson directed.

The committee also raised questions on unresolved matters around the Kisumu Airport land payment.

Lawmakers demanded to know who received the Sh25.6 million that was not accounted for, whether land title transfers had started, and what the current state of KAPS' parking revenue system is.

"All matters relating to land will be revisited on May 13th and 14th, when the Committee reconvenes for further engagement with KAA officials," said Pkosing.

"We also expect the National Land Commission to attend these sessions to help clarify and resolve all outstanding land issues," he added.

The committee instructed KAA to provide a full update and all supporting records in the next session, as Parliament continues to seek accountability and transparency in the handling of national assets.