Sh4.31 billion paid in advance without work, MPs question KAA over JKIA project
The committee also noted a Sh7.4 million payment to PricewaterhouseCoopers for technical advisory services after its contract was terminated under unclear circumstances.
The National Assembly Public Investments Committee on Commercial Affairs and Energy on Thursday subjected the Kenya Airports Authority (KAA) to intense scrutiny over serious financial irregularities connected to the Greenfield Terminal project at Jomo Kenyatta International Airport.
Reviewing audited accounts for 2018/2019 through 2021/2022, the committee, chaired by Pokot South MP David Pkosing, raised grave concerns about payments lacking proper justification, including a Sh75 million disbursement allegedly used for the groundbreaking ceremony in 2014.
This amount was paid to contractors and recorded as a contract variation despite no such provision in the original agreement or bill of quantities.
KAA’s acting Managing Director Nicholas Bodo explained that the groundbreaking, which was officiated by the Head of State as part of Vision 2030 flagship projects, required unforeseen logistical expenses that were covered using contingency funds within the contract, with tender committee approval citing compliance with the Public Procurement and Disposal Act of 2005.
The committee, however, questioned the appropriateness of classifying ceremonial costs as project variations, flagging it as a potential misuse of public money.
In addition to this, MPs uncovered over Sh4.5 billion paid to contractors and consultants without evidence of completed work by June 30, 2019.
This included Sh4.31 billion advanced to the main contractor ACEG/CATIC JV and Sh216 million to the consulting firm Louis Berger JV Runji and Partners.
KAA justified the advance payments as contractually backed by valid guarantees and noted recoveries made through mediation after contract termination.
The committee also noted a Sh7.4 million payment to PricewaterhouseCoopers for technical advisory services after its contract was terminated under unclear circumstances.
MPs expressed concern over the termination process itself, which lacked clear documentation confirming agreement by contractors and consultants, potentially exposing the government to legal challenges.
KAA submitted annexed documents showing that consultants acknowledged contract termination and disputes were resolved through mediation.
The Greenfield Terminal project, intended to expand JKIA’s passenger handling capacity, was controversially terminated in 2016, leaving lingering questions about procurement and contract management.
The committee promised a detailed report to determine if further investigations or legal action are necessary to uphold financial accountability.
