Probe into JKIA takeover plan hots up as Ksh.150M payout halted
Plans to award Ksh.150million to a transaction advisor in the takeover bid for Jomo Kenyatta International Airport (JKIA) by Kenya Airways have been suspended.
On Thursday, the Kenya Airports Authority was told not to make any such payment until investigations by the Public Investments Committee are concluded.
“The deal seems to only benefit KQ which is a loss-making institution compared to KAA which made a profit of Ksh3.8billion,” the Abdullswamad Nassir-led committee said.
The transaction advisory firm that will oversee the merger was to be paid Ksh.150million.
However, PIC through the Auditor General’s office, recommended that all dealings between KAA and the national carrier be suspended.
During a meeting on Thursday, the committee was told that KAA was not privy to the discussions on the merger between the two entities.
There were also claims that the proposal came from KQ with recommendations from ‘the highest office in the land.’
KAA lawyers are said to have cautioned the Board that the merger was a bad deal.
Despite this, Transport PS Esther Koimet apparently directed KAA to finalise the merger as soon as possible and this resulted in the direct procurement of the advisory firm.
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