NAIROBI, Kenya — The Kenya Airports Authority (KAA) is under scrutiny after Parliament’s Public Investments Committee on Commercial Affairs and Energy unearthed questionable expenditures tied to the now-abandoned Greenfield Terminal project at Jomo Kenyatta International Airport (JKIA).
The committee, chaired by Pokot South MP David Pkosing, reviewed KAA’s audited accounts for the financial years 2018/2019 to 2021/2022.
During Thursday’s session, MPs raised red flags over a Sh75 million payment made in 2014 for the project’s groundbreaking ceremony—an amount controversially classified as a “contract variation” despite no such provision in the original contract or bill of quantities.
Acting KAA Managing Director Nicholas Bodo defended the expenditure, saying the event—officiated by the Head of State as part of the Vision 2030 agenda—involved significant logistical costs that were not factored into the initial budget.
He added that the funds were drawn from contingency allocations within the contract and approved by the tender committee, in line with the Public Procurement and Disposal Act of 2005.
But MPs disputed this justification, arguing that ceremonial costs could not be classified as contract variations. “This raises serious concerns about misuse of public funds,” said one committee member.
More troubling for the committee were payments exceeding Sh4.5 billion made to contractors and consultants without corresponding proof of completed work by June 30, 2019.
This includes Sh4.31 billion paid in advance to the main contractor—Chinese joint venture ACEG/CATIC JV—and Sh216 million to consulting firm Louis Berger JV Runji and Partners.
While KAA explained that the advance payments were secured through guarantees and later recovered through mediation following contract termination, MPs expressed concerns about transparency and procurement accountability.
The committee also flagged a Sh7.4 million payout to audit firm PricewaterhouseCoopers, which was made after its contract was abruptly terminated under unclear circumstances.
Lawmakers further questioned the documentation provided for the termination of contracts with both contractors and consultants, saying the lack of clear records could expose the government to legal and financial risks.
KAA, in response, tabled documents showing that the consultants had formally acknowledged the contract termination and that contractor disputes had been resolved through mediation.
The Greenfield Terminal project, intended to expand JKIA’s passenger capacity, was halted in 2016 amid controversy and rising costs.
Nearly a decade later, the project continues to cast a long shadow over the agency’s financial stewardship.
The parliamentary committee is now preparing a report that could recommend further investigations or legal proceedings to safeguard public resources and enhance procurement oversight within state agencies.
