Company renews battle for JKIA duty-free shops

CORPORATE NEWS

Terminal 1A at the Jomo Kenyatta International Airport. World Duty Free, a concessionaire fighting for exclusive rights to run duty-free shops at the JKIA has accused the Swiss firm awarded the lucrative tender —Dufry International— of operating in the country illegally. PHOTO | FILE  NATION MEDIA GROUP

By BRIAN WASUNA, bwasuna@ke.nationmedia.com

IN SUMMARY

• The firm now wants the court to nullify the duty-free tender awarded to Dufry in January.
• World Duty Free has also disowned having any links to controversial businessman Kamlesh Pattni, and denies striking any deal with the government to withdraw all suits it has filed to challenge its termination as the sole operator of the concessionaire shops.

A concessionaire fighting for exclusive rights to run duty-free shops at the Jomo Kenyatta International Airports has accused the Swiss firm awarded the lucrative tender —Dufry International— of operating in the country illegally.

World Duty Free claims in court filings that the Swiss firm does not appear in the registrar of companies’ database, and is operating in Kenya illegally. The firm now wants the court to nullify the duty-free tender awarded to Dufry in January.

Section 366 of the Companies Act requires foreign firms to furnish the registrar with details of its structure and incorporation, and a Kenyan agent designated to receive any notices or legal documents on their behalf.

World Duty Free holds that Dufry is yet to do comply with the law.

“I have discovered that Dufry International AG being a foreign registered company has not complied with section 366 of the Companies Act hence is operating in Kenya illegally and the award of the tender to it is a nullity,” says Kevin Dias, a director of the firm.

World Duty Free has also disowned having any links to controversial businessman Kamlesh Pattni, and denies striking any deal with the government to withdraw all suits it has filed to challenge its termination as the sole operator of the concessionaire shops.

Mr Pattni had through his companies run the duty free shops at JKIA, but in 2013 relinquished the establishments through a joint press conference with former Transport minister Michael Kamau.

READ: Pattni renews legal fight for duty-free shops

“Mr Pattni does not constitute World Duty Free and if there was any settlement the same ought to have signed under the seal of the company by the company’s directors and recorded in court, and not by a mere press conference,” Mr Dias added.

The Kenya Airports Authority has in its suit papers held that World Duty Free is held by Mr Pattni, and has failed to honour the terms of the settlement that was to see the billionaire withdraw the suits fighting his eviction from the shops.

The deal was also to see Mr Pattni relinquish Sh1.9 billion compensation he was awarded by retired Ghanaian judge Edward Torgbor.

KAA said it awarded another firm associated with the billionaire premises at JKIA to run concessionaires, but World Duty Free and Mr Pattni did not honour their side of the deal.