Foreigner who got exclusive rights to run duty free shops

Just over 25 years ago, a Dubai-based businessman approached the Kenya Government for a business deal that would open the door to one of the longest-running business controversies in the country’s history and cost taxpayers heavily.

Nassir Ibrahim Ali, who held a Canadian citizenship, flew to Kenya with the dream of establishing duty free shops at Kenya’s international airports through his company— House of Perfume.

To clinch his business deal, Mombasa-based tycoon Rashid Sajjad had advised Mr Ali to visit the then President Moi and make his proposal.

He was also advised to bring with him a donation to the President. Mr Ali obliged to both proposals and delivered a briefcase packed with $2 million for Mr Moi. He would later argue that this was a lawful gift of protocol or personal donation under the Kenyan spirit of Harambee, by which private contributions are marshalled to finance communal projects.

Mr Ali said in quasi-judicial proceedings that when they went to see Mr Moi, they placed the briefcase by a wall. On their way out, they picked it up and the money had been replaced by some green maize, which startled the international businessman.

House of Perfume entered into an agreement with the government, represented by the then powerful Internal Security PS Hezekiah Oyugi. In the deal, the state would lease some 300 square metres of space at Jomo Kenyatta International Airport and 200 square metres to House of Perfume at the Mombasa airport.

In return, the company would pay the government $1 million for both complexes. The government also agreed the company would enjoy sole and exclusive rights for such business in both airports and, intriguingly, “any airport terminals — which may in future be constructed at public airports — to construct, develop and furnish the duty free complexes and to operate such complexes commercially for its own benefit without restraint.”

It was also agreed that government would grant the company an option of constructing a transit hotel with a minimum of eight beds with a bar and restaurant for use by travellers.

The juiciest part of the agreement was that no other person or company would be allowed to operate such business without the prior, written consent of House of Perfume and that the company would choose at its sole discretion where they best deemed fit to build their shops.