Parliament Grills KAA Bosses Over Ghost Payments in Greenfield Terminal Scandal

By TWV Team

A cloud of suspicion hangs over the Kenya Airports Authority (KAA) after revelations emerged concerning irregular multi-billion-shilling payments tied to the controversial Greenfield Terminal project at Nairobi’s Jomo Kenyatta International Airport (JKIA). The terminal, once billed as a Vision-2030-flagship initiative, was mysteriously terminated in 2016, yet its financial footprint continues to raise eyebrows.

Top KAA officials were last week taken to task by the Public Investments Committee on Commercial Affairs and Energy over questionable disbursements, including a staggering KSh 75 million payment allegedly used for a groundbreaking ceremony in 2014. Legislators heard that the amount, paid to contractors, was dubiously categorized as a “contract variation,” despite no such provision existing in the original agreement or bill of quantities.

Committee Chair David Pkosing (Pokot South), alongside MPs Katana Kahindi (Kaloleni), Mwangi Kiunjuri (Laikipia East), and Duncan Mathenge (Nyeri Town), expressed outrage over what they termed blatant misuse of public funds. They questioned why ceremonial expenses were disguised as project-related costs.

“This committee must take the matter seriously. We cannot allow people to play with taxpayers’ money,” said Mr. Kahindi. “There must be consequences, or this will keep happening.” The lawmakers were reviewing audited accounts for 2018–2019 to 2021–2022 when they flagged nugatory payments totalling over KSh 4.5 billion.

These included:

  • KSh 4.31 billion was advanced to the main contractor, ACEG/CATIC JV, despite the project never taking off.
  • KSh 216 million was paid to consulting firm Louis Berger JV Runji and Partners without verifiable work delivered.
  • KSh 7.4 million was paid to PricewaterhouseCoopers (PwC) after its contract was terminated under opaque circumstances.

In a bid to defend KAA, Managing Director Nicholas Bodo told the committee that the “ceremony costs,” although not pre-budgeted, were covered under contingency provisions in the contract. He insisted the payments were approved by the tender committee and complied with the Public Procurement and Disposal Act (PPADA) 2005.

Regarding the KSh 4.31 billion advance payment, Mr Bodo stated it was within the contract’s terms and backed by an Advance Payment Guarantee. He added that much of the sum was later recovered or reconciled through mediation after the project’s termination.

Despite these assurances, MPs remained unconvinced. Mr Kiunjuri suggested the rot might run deeper than management, possibly originating at the board level, and warned that failure to act decisively would expose public finances to similar risks in the future.

Mr Mathenge echoed the concern: “This is how money is stolen in broad daylight. If this committee does not act, we are accomplices.” The Greenfield Terminal, initially set to expand JKIA’s capacity dramatically, was intended to secure Nairobi’s position as a regional aviation hub. Its abrupt cancellation left unanswered questions, and a hefty price tag.

The committee is now expected to table a report recommending whether further investigations or prosecutions should follow. As the spotlight intensifies, the fate of those involved, and the integrity of Kenya’s infrastructure financing, hangs in the balance.