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Economy

KAA on the spot over cost of Kisumu airport expansion

Auditor-General Edward Ouko. FILE PHOTO | NMG
Auditor-General Edward Ouko. FILE PHOTO | NMG 

Kenya Airports Authority (KAA) is on the spot for varying the contract for the expansion of the runway and cargo apron at Kisumu Airport by more than Sh190 million.

Auditor-General Edward Ouko says the KAA management has failed to explain what caused the variation of the contract cost.

“Management has not explained what occasioned the contract sum variation above or the logic behind Sh190,156,845 omission as approved by the tender committee as the original contract was inclusive of 16 per cent value added tax (VAT),” Mr Ouko said in the latest  audit report tabled in Parliament by Majority Leader Aden Duale.

KAA awarded China Overseas Construction Group Co. ltd (Covec) the contract for the runway strengthening and widening, parallel taxiway and cargo apron at a cost of Sh1,708,391 inclusive of VAT.

The scope of the works, which commenced in March 2012, was scaled down in October 2013 due to inadequate provision of funds from the parent ministry leading to its splitting into two stages.

Stage one involved the construction of a parallel taxiway, cargo apron and public car park while phase two involved runway strengthening and widening.

Mr Ouko said the contractor finalised the construction of the parallel taxiway and cargo apron and public car park in February 2014 at a cost of Sh1.4 billion inclusive of 16 per cent VAT.

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