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KQ locked in a row over Sh1bn staff houses deal

Kenya Airways chief executive officer Titus Naikuni (left) and chief operating officer Mbuvi Ngunze during a past Press briefing at the KQ Pride Centre in Nairobi. Photo/SALATON NJAU
Kenya Airways chief executive officer Titus Naikuni (left) and chief operating officer Mbuvi Ngunze during a past Press briefing at the KQ Pride Centre in Nairobi. Epco Builders wants the airline to pay Sh575,000 more on each of the two bedroom houses. Photo/SALATON NJAU  

National carrier Kenya Airways is locked in a dispute with a real estate developer over the pricing of a Sh1 billion housing scheme for its staff.

Epco Builders Limited wants Kenya Airways to pay Sh575,000 more on each of the two bedroom houses and Sh825,000 above the agreed price for each of the three-bedroom units constructed for its staff in Embakasi, Nairobi.

The developer claims that Kenya Airways failed to meet the terms of agreement, leading to delay in the construction of the 322 units which pushed up the cost of construction.

The firm, which won a tender to construct the houses for KQ staff in 2008, claims that delay in transferring three parcels of land held up construction and is seeking orders compelling Kenya Airways to compensate it for the extra cost.