The Kenya Airports Authority (KAA) has defended its financial conduct regarding the shelved Greenfield Terminal project at Jomo Kenyatta International Airport, amid tough questioning from the National Assembly’s Public Investments Committee on Commercial Affairs and Energy.
Appearing before the Committee, chaired by Pokot South MP David Pkosing, KAA officials were grilled over payments totaling Sh4.5 billion tied to the now-abandoned project, which was terminated in 2016. Among the expenditures was a Sh75 million payment linked to the 2014 groundbreaking ceremony. Lawmakers questioned the legitimacy of classifying this as a “contract variation,” pointing out that the original agreement had no such clause.
KAA Acting Managing Director Nicholas Bodo told the committee that the amount was drawn from contingency funds and approved by the tender committee. He emphasized that the authority adhered to procurement laws. However, MPs expressed concern about the use of construction funds for ceremonial expenses.
“How can there be such a huge variation in the cost of a project that had not even begun?” posed Kaloleni MP Katana Paul Kahindi. Nyeri Town MP Duncan Mathenge and others echoed the need for accountability.
The committee also scrutinized an advance payment of Sh4.3 billion to the main contractor and Sh216 million to a consultancy firm. Lawmakers said documentation to support the works completed by June 2019 was inadequate. Audit records further revealed a separate firm received Sh7.4 million despite the early termination of its technical advisory contract.
In response, KAA maintained that all payments were contractually covered or recovered through mediation. It explained that the advance payment was backed by a valid guarantee and that consultancy fees covered time-based services such as design reviews and supervision.
KAA also noted that many individuals originally involved in the project had since left the organisation, complicating accountability.
The Greenfield Terminal, once a key Vision 2030 project, was cancelled under unclear circumstances. The committee is expected to table a report with recommendations, which may include calls for deeper investigation or legal action to protect public funds.
