Duty-free shop deal fair, says Swiss firm

What you need to know:

  • Swiss concessionaire Dufry International said in court papers that allegations being fronted by World Duty Free Company Ltd, which is associated with businessman Kamlesh Pattni, were baseless and should be dismissed.
  • However, Dufry has, in its response, said claims by World Duty Free lack factual foundation, given that they are founded on the 1989 agreement which was amended on May 11, 1990 providing a 10-year lease period with the option to renew for a further 10 under specified terms.

A company that was contracted by the Kenya Airports Authority to operate duty-free shops at the two country’s leading airports has said the award was above board.

Swiss concessionaire Dufry International said in court papers that allegations being fronted by World Duty Free Company Ltd, which is associated with businessman Kamlesh Pattni, were baseless and should be dismissed.

World Duty Free, which trades as Kenya Duty Free Complex, filed an urgent application two weeks ago, urging the court to stop the authority from contracting Dufry International to operate duty-free shops at the Jomo Kenyatta International Airport in Nairobi and Moi International Airport, Mombasa.

World Duty Free claimed a deal it had entered into with KAA on April 27, 1989, to exclusively operate the shops was still valid and the contract awarded to the Swiss firm on October 15, 2014, should be quashed.

However, Dufry has, in its response, said claims by World Duty Free lack factual foundation, given that they are founded on the 1989 agreement which was amended on May 11, 1990 providing a 10-year lease period with the option to renew for a further 10 under specified terms.

“The second lease, which was made for a term of 10 years with effect from July 10, 2002 expired naturally on July 9, 2012,” said Dufry International.

It also countered claims by World Duty Free that there is an existing court order issued in 2008, stopping KAA from awarding any other party a contract to run the shops.

The case will be heard on Thursday next week.