Suspended Infrastructure secretary Michael Kamau said the agreement
between KAA and Dufry International was worse than the 1989 contract
given to businessman Kamlesh Pattni. PHOTO | FILE
By EDWIN MUTAI
The Ministry of Infrastructure was not informed of
last year’s agreement between the Kenya Airports Authority (KAA) and
Dufry International for the 25-year concessioning of duty-free shops,
suspended Infrastructure secretary Michael Kamau has said.
The agreement was worse than the 1989 contract given to
businessman Kamlesh Pattni, Mr Kamau said, adding that it gave Dufry the
right to operate retail areas even in temporary airport terminals. Mr
Pattni’s contract was terminated in August, 2014.
Mr Kamau and his principal secretary Nduva Muli,
who was also suspended pending conclusion of corruption allegations,
revealed that the KAA board was not informed of the drafting and
execution of the concession agreement that was awarded to Dufry
International.
Mr Muli told the Public Investment Committee (PIC)
that the agreement gave the concessionaire exclusive rights to manage,
lease and sublet all duty-free shops in the country.
Clauses
He questioned five clauses in the agreement, one of
which granted the concessionaire the right to develop and operate
retail areas in the event of temporary facilities or terminals created
for the handling of international departing or arriving passengers.
Mr Muli said the concession was only awarded to
Dufry to operate duty-free shops in the new Terminal 1A and not the
second terminal that is currently under construction or the new project.
“In the event that the authority further develops
terminal facilities other than the Terminal 1A, the concessionaire shall
be granted priority over the concessions within such facilities, upon
terms and conditions substantially similar to this agreement with due
adjustments of rates,” the agreement read.
Mr Kamau told the committee that he summoned the
suspended KAA managing director Lucy Mbugua and the tender committee
members who awarded the contract to correct the mess.
“I am sorry for micro-managing KAA. I summoned them
to the PS’s office where we asked them what they had done in the
concession agreement, we intervened to have that agreement corrected,”
he said.
Mr Muli said he had raised the matter with the board after he realised the KAA management was keeping it secret.
The World Duty Free company has moved to court to
seek Sh7 billion compensation claim against the KAA for forcible
eviction from the airport
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