A site inspection at JKIA revealed that a private company is renting 8,343 square feet of space but occupying even more, with the excess area not being charged. Even more concerning, KAA is charging just Ksh 6 per square foot—well below the government’s standard rates of Ksh 20 to Ksh 122. This pricing discrepancy is costing the authority between Ksh 904,162 and Ksh 7.49 million in potential revenue
A new report by the Auditor General has put the Kenya Airports Authority (KAA) under scrutiny, revealing serious issues with land disputes and uncollected revenue. The findings raise major concerns about how the state agency is managed and its financial stability.
The report highlights several cases where KAA’s land ownership is in jeopardy:
- Embakasi, Nairobi: A 0.867-acre plot valued at Ksh 4.3 million has been illegally seized and allocated to another party.
- Jomo Kenyatta International Airport (JKIA): Two nearby land parcels are occupied by unidentified individuals.
- Wilson Airport: Part of the land is embroiled in a legal dispute currently before the High Court.
- Malindi Airport: A 0.8925-hectare lease was wrongly allocated to a church group.
- A 0.0549-hectare lease was given to a petroleum company without a clear justification.
- Airstrips Nationwide: At eight airstrips, 85 land parcels intended for the Kenya Pipeline Company are still registered under KAA, with unexplained delays in transferring the titles.
In addition to land management issues, KAA has failed to collect Ksh 16.68 billion in aeronautical revenue. This includes passenger service charges, landing and parking fees, airbridge charges, and fuel uplift fees. Alarmingly, the agency is not collecting any fees from airship operators flying domestic routes. Moreover, there is no audit of passenger numbers or aircraft movements to verify whether the Ksh 16.68 billion figure is accurate.
KAA reported a total operating revenue of Ksh 21.94 billion, with Ksh 5.25 billion generated from non-aeronautical sources such as rentals, concessions, and security passes. However, a review of customer accounts shows rental income at just Ksh 1.3 billion, raising doubts about the reported figures.
A site inspection at JKIA revealed that a private company is renting 8,343 square feet of space but occupying even more, with the excess area not being charged. Even more concerning, KAA is charging just Ksh 6 per square foot—well below the government’s standard rates of Ksh 20 to Ksh 122. This pricing discrepancy is costing the authority between Ksh 904,162 and Ksh 7.49 million in potential revenue.
The Auditor General’s report paints a troubling picture of mismanagement at KAA. Poor land administration and lax revenue collection are leading to major financial losses and legal battles.
These issues require urgent intervention by the government and regulatory bodies. Greater transparency, accountability, and strict enforcement of lease agreements are essential. Without immediate reforms, KAA risks further financial decline and loss of public trust.
The Ministry of Transport and aviation regulators must take decisive action. A comprehensive review of land ownership, revenue collection, and rental agreements is critical to restoring KAA’s financial health. Without change, the agency will continue to haemorrhage money, worsening an already precarious situation.
