How Uhuru's bus contract order cost KAA Sh158m
One of the buses which had been acquired for airside transfer at JKIA. KAA has been ordered to pay Sh158 million to a company whose airport shuttle buses contract was terminated six years ago following questions from President Uhuru Kenyatta.
The Kenya Airports Authority (KAA) has been ordered to pay Sh158 million to a company whose airport shuttle buses contract was terminated six years ago following questions from President Uhuru Kenyatta.
The sole arbitrator, Mr Allen Gichuhi, awarded the compensation to Relief & Mission Logistics on grounds that the KAA failed to show how public interest prompted the cancellation of the bus deal.
Relief & Mission Logistics won the contract to ferry passengers on the airside at the Jomo Kenyatta International Airport (JKIA) in 2014 for a period of eight years.
But the contract was terminated after President Kenyatta visited the airport in May 2015 on a different mission.
He questioned how the KAA could pay Sh11 million every month for five buses, prompting a legal dispute.
While terminating the contract, the State-run KAA said the cancellation was of necessity, convenience and in public interest.
But the company which had won the contract argued that the termination of the bus deal caused it financial losses and damaged its reputation.
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