The Kenya Airports Authority (KAA) has defended its handling of payments related to the now-shelved Greenfield Terminal project at Jomo Kenyatta International Airport, following scrutiny by 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 questioned over payments amounting to Sh4.5 billion tied to the project, which was terminated in 2016.
One of the expenditures under review was a Sh75 million payment connected to the 2014 groundbreaking ceremony.
Legislators sought clarification on the legitimacy of the spending, noting it was categorised as a “contract variation,” despite the original agreement reportedly lacking such a provision.
KAA acting Managing Director Nicholas Bodo told the committee that the amount was drawn from contingency funds and had received approval from the tender committee, asserting that the authority had adhered to procurement regulations.
Even so, lawmakers expressed concern about treating ceremonial expenses as part of construction costs.
MPs, including Katana Paul Kahindi (Kaloleni) and Duncan Mathenge (Nyeri Town), questioned the basis of the spending and called for accountability.
“How can there be such a huge variation in the cost of a project that had not even begun?” asked Katana.
“This committee must take the matter seriously and ensure responsible officials are held to account. Public funds must be protected."
Pkosing acknowledged the seriousness of the matter and emphasised the need for accountability.
In response to questions on oversight, KAA noted that many of the individuals involved in the early stages of the project had since exited the organisation.
The committee also raised queries over an advance payment of Sh4.3 billion to the main contractor and Sh216 million to a consultancy firm.
Legislators highlighted that documentation to verify completed work as of June 2019 appeared insufficient.
Audit records reviewed by the committee further indicated that another firm received Sh7.4 million following the abrupt termination of its contract for technical advisory services.
KAA maintained that all payments were either covered by contractual clauses or recovered through mediation.
It stated that the Sh4.3 billion was part of an advance payment clause in the contract, backed by a valid Advance Payment Guarantee, and that the amounts were later recovered or settled during a mediation process following termination of the contract.
Regarding the consultancy services, KAA explained that partial payments had been made for time-based services such as design reviews and supervision.
Committee members voiced concern over what they described as inadequate documentation during the project’s termination phase, cautioning that such gaps could expose the government to legal risks.
The Greenfield Terminal project, once envisioned as a flagship initiative under Vision 2030, was discontinued in 2016 under unclear circumstances.
The Committee is expected to table a report with recommendations, which may include calls for further investigation or legal review.
