KAA withdraws suit against Chinese firm

Kenya Airports Authority (KAA) has withdrawn a suit it filed to stop the government from committing it into a Sh55billion contract with a Chinese company.

Lawyers for KAA and those of Anhui Construction and the Public Procurement Review Board Tuesday told Justice Cecilia Githua that the parties had agreed to withdraw the matter.

KAA filed the suit last week to stop the procurement review board from compelling it to sign a contract with Anhui, a Chinese company, for the construction of a new terminal at the Jomo Kenyatta International Airport (JKIA), Nairobi.

The new terminal is to be constructed at the cost of Sh55 billion. The airports’ body contended that the board was forcing it into the contract before a financing agreement had been signed as provided for in the tender document.

However, the Cabinet met a few days after the suit was filed and endorsed the contract, directing KAA to sign it.

KAA managing director Stephen Gichuki, who had been sent on compulsory leave as controversy over the tendering process raged, was also recalled.

Following the Cabinet approval, KAA signed the contract last week.

The Cabinet directive overtook KAA’s petition and may be the reason that the parties agreed to withdraw it.

Anhui is to construct the terminal in a joint venture with China Aero-Technology International Engineering.

The project, which is known as the Greenfield Terminal, is a flagship project under Kenya’s development plan, the Vision 2030.