Kenya denies talks with Chinese firm over airport project

Telecom operators will pay customers up to Sh30 per day for dropped calls if Parliament adopts a revived Bill that imposes a penalty for voice service outages. PHOTO | POOL

What you need to know:

  • The Transport ministry has denied reports that it was in negotiations to pay more money to a Chinese firm that has slapped the Kenya Airports Authority (KAA) with a Sh17.6 billion bill for an airport project that never took off.
  • Transport Principal Secretary (PS) Solomon Kitungu told MPs that a negotiations and strategy committee set up in April is seeking to reclaim an advance payment of Sh4.2 billion and not to pay more money to the Chinese firm.

The Transport ministry has denied reports that it was in negotiations to pay more money to a Chinese firm that has slapped the Kenya Airports Authority (KAA) with a Sh17.6 billion bill for an airport project that never took off.

Transport Principal Secretary (PS) Solomon Kitungu told MPs that a negotiations and strategy committee set up in April is seeking to reclaim an advance payment of Sh4.2 billion and not to pay more money to the Chinese firm.

“We are not preparing to pay but to claim,” Mr Kitungu told the Public Investments Committee (PIC) last evening.

He appeared before PIC to shed light on the nature of negotiations with the company hired to build a new terminal at the Jomo Kenyatta International Airport (JKIA).

The greenfield terminal was to be built by ACEG-CATIC JV at an estimated cost of Sh64 billion.

The KAA and the Ministry of Transport yesterday failed to provide the nature of the negotiations on compensation with China National Aero-Technology International Engineering Corporation whose contract to build the second terminal at the JKIA was cancelled.

PIC chairman Abdulswamad Nassir directed Mr Kitungu to table the report of the negotiations and strategy committee presented to the KAA board.

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