The authority says delayed valuation of the planes has held the sale, which was expected to generate millions of shillings.
The valuation is aimed at complying with the legal requirement that demand that bars the auction of seized assets at below 75 per cent of the prevailing market value.
The KAA reckons that the firms and individuals owe it millions of shillings from accumulated parking and landing fees arrears, setting the stage for Kenya’s biggest auction of aircraft.
A pricing hitch has stalled the auction of 101 aircraft abandoned at various airports countrywide aimed at clearing rising parking charges after the Kenya Airports Authority (KAA) declared them a safety risk.
The authority says delayed valuation of the planes has held the sale, which was expected to generate millions of shillings.
The valuation is aimed at complying with the legal requirement that demand that bars the auction of seized assets at below 75 per cent of the prevailing market value.
The KAA reckons that the firms and individuals owe it millions of shillings from accumulated parking and landing fees arrears, setting the stage for Kenya’s biggest auction of aircraft.
The planes include those used by business tycoons and politicians for short flights and commercial aircraft owned by top firms such as 748 Air Services, Silverstone, Jetlink and Fly540.
Aircraft belonging to State agencies like the Kenya Police, Moi University and Somalia Airforce also risk being sold when the auctioneer’s hammer falls.
The KAA, the agency in charge of all Kenyan airports, had given the aircraft owners 30 days between August 14 and September 17 to claim them or have them sold through public auction.
“Work is still ongoing in which a pricing consultant is confirming the minimum price for the auction,” said KAA told the Business Daily. “Once all these processes are complete, we will officially publish the auction announcement.”
Large aircraft pay $25 (Sh2,707) daily to park at airports like Jomo Kenyatta International Airport and $585 (Sh63,355) and $702 (Sh76,000) to land during the day and night respectively.
Small planes are charged $15 (Sh1,625) daily parking fees and $223 (Sh24,150) and $268 (Sh29,000) for landing during the day and night, respectively.
Kenya’s business magnates, politicians and new millionaires are fast taking to the skies as the preferred mode of transport — expanding the market for leasing and private ownership of planes.
Registration of new aircraft owned by wealthy Kenyans and private aviation firms nearly doubled last year, an indication of growing affluence that has been driving up demand for air travel.
The abandoned planes are parked at JKIA, Moi International Airport in Mombasa, Lokichoggio Airport and Wilson Airport.
JKIA has 17, including a Sh2 billion Bombardier plane belonging to Jetlink, two Soviet-built passenger planes owned by Somali Airforce and two old Boeing plane registered under Jubba Airways.
Wilson Airport hosts more than half or 64 of the targeted planes, with five linked to the Kenya Police Air wing, Fly540, Skylink, Silverstone and Moi University.
Others belong to individuals and investors operating small chartered short flights targeting the rich.
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