A businessman has moved to court accusing the Kenya Airports Authority (KAA) of denying his firm the opportunity to set up a meet-and-greet service lounge at the Jomo Kenyatta International Airport (JKIA), despite winning the tender almost four years ago.
David Mberiah, the chairman and director of Capital International Concierge Services Limited, said in court documents that the KAA had frustrated the tender by refusing to provide a space to set up a lounge.
Meet-and-greet services agents assist travellers in clearing all airport arrival formalities.
Mr Mberiah said the failure to provide his firm with the space has seen the business lose more than Sh300 million of expected revenue.
The firm said it was the successful tenderer for the provision of lounge on December 18, 2020.
“The petitioner avers that even after executing the said contract and without any reasonable cause, the 1st respondent (KAA) impeded, hindered, frustrated and prevented the petitioner from rendering meet and greet services at the JKIA,” he said.
In response to the case, KAA said it was incorrect for the firm to allege that it was the sole successful bidder. This, KAA added, is because the tender had two categories and Mr Mberiah’s firm was successful in one of the categories.
KAA further said it was not true that it has failed to provide the firm with the required facilities including arrival and departure lounges since the tender did not have the requirement for the authority to provide a lounge.
“As per the Authority’s concession policy, lounge services are a different category of business and their allocation is subject to a competitive procurement process,” KAA said in reply.
Through lawyer Henry Kurauka, the firm said other than refusing to give its space to establish the lounge, KAA is allegedly demanding payment of Sh2.87 million.
He added that KAA has allegedly advertised a fresh tender for the same services for 2023-2024.
According to the lawyer, the actions of the KAA are intended to create confusion and enable certain entities to operate without fulfilling their financial obligations as stipulated in the tender agreement.
The firm said the decision to add more service providers who did not win the tender and charge them less than the petitioner is discriminatory, illegal and oppressive.
High Court judge Lawrence Mugambi directed the case to be heard on November 5, 2024.
