KAA faces fine over unpaid concession fees

The claim comes after the termination of a Sh11 million per month contract, which the authority is being accused of not paying concession fees and damages.

“Note 52 (contingency) to the financial statements has stated that Relief and Mission has pending invoices for apron buses amounting to Sh34,431,272 after termination of the contract in public interest for which the authority has been served with a claim for unpaid concession fees and damages,” said auditor general Edward Ouko in an audit report for KAA.

Relief and Mission Logistics is claiming it spent Sh250 million to buy five apron buses and paid Sh45 million in taxes to the Kenya Revenue Authority.

“We were to operate a service based on a profit margin. This was a contract signed between us and the authority to provide a service,” said John Gitonga Kihoro, director, Relief and Mission Logistics.

Ouko has also said thay KAA owes the Kenya Civil Aviation Authority (KCAA) a Sh539 million, 15% of proceeds from external journeys.