Thursday, 1 May, 2025
MPs probe Kenya Airports authority over land irregularities and revenue discrepancies
Bunge Towers, Parliament Buildings. Wednesday 30th April, 2025.
The Public Investments Committee on Commercial Affairs and Energy convened on Wednesday to examine the audited financial statements of the Kenya Airports Authority (KAA) for the financial years 2018/2019 to 2021/2022.
Appearing before the committee, chaired by Hon. David Pkosing (Pokot South), was KAA Acting Managing Director, Mr. Nicholas Bodo, who was grilled over irregularities in land management and revenue reporting at the Authority.
A key issue raised was the omission of a 3.29-acre parcel of land LR No. 9042/668, valued at Kshs. 130 million from KAA’s leasehold records.
The land had reportedly been surrendered to the Kenya Police Service, yet auditors flagged the absence of official documentation or correspondence to validate the transaction.
Although the asset’s value was reflected in KAA’s 2019/2020 financial statements, a directive from the Executive Office of the President dated January 19, 2023 put a halt to the lease processing.
Mr. Bodo informed the committee that KAA is actively pursuing formal authorization to conclude the lease in line with internal procedures.
Hon. Pkosing instructed that the Officer Commanding Police Division (OCPD) for Embakasi East be summoned to clarify the police’s claim over the land in dispute.
The committee also scrutinized the acquisition of land for the expansion of Kisumu International Airport.
While documentation confirmed payments amounting to Kshs. 165 million, auditors found incomplete records supporting the full acquisition cost of Kshs. 190.7 million.
There was also no evidence that the transfer of surrendered land titles had begun.
Further complications emerged regarding duplicated title deeds for Kisumu Airport L.R. No. Municipality/Block No. 1/8 and No. 1/21 show different acreage.
In response, Mr. Bodo explained that one title was surrendered following an amalgamation process, which had been formally acknowledged by the Commissioner of Lands.
The committee committed to undertaking a fact-finding mission to Kisumu to inspect the airport land, including some school structures reportedly built on the property.
In another case, a 0.867-acre parcel in Embakasi Village valued at Kshs. 4.3 million was found to have been partially (0.47 acres) irregularly allocated to a third party.
Although a court ruling ordered the cancellation of the title in KAA’s favour, the matter remains unresolved due to a pending appeal in the Court of Appeal.
Mr. Bodo noted that KAA had made several follow-ups with the National Land Commission, including a formal reminder dated April 19, 2024, but no action has yet been taken.
The Committee also raised concerns over a significant revenue discrepancy in parking collections at Jomo Kenyatta International Airport (JKIA).
A mismatch of Kshs. 113.9 million was identified between records from Kenya Airports Parking Services (KAPS) and KAA’s electronic point-of-sale (ePOS) system.
While KAPS reported revenues of Kshs. 191 million, KAA’s ePOS system reflected only Kshs. 77 million.
Mr. Bodo attributed the discrepancy to system inconsistencies and timing issues.
It also emerged that KAPS maintains two separate databases, one for internal use and another for ePOS integration prompting serious concerns about data integrity.
Despite ongoing reconciliation efforts, a final report has yet to be submitted.
The committee cited violations of the Public Finance Management (National Government) Regulations, 2015 specifically sections 64(1), 139(1), 143(2), and 23(1) and stressed the urgent need for increased accountability in managing public assets and revenue.
Hon. Pkosing directed the Auditor-General to determine the revenue-sharing formula used by KAPS and ordered a reconciliation of bank statements from both KAA and KAPS.
“Confirm who the collector printer is, investigate possible criminal liability on the part of both KAPS and KAA regarding revenue collection, and clarify why KAA has not flagged any suspected under-declaration. If they have, submit all supporting evidence by June 3rd,” the Chairperson directed.
The Committee now seeks clear answers to several pressing questions; Who received the unaccounted Kshs. 25.6 million from the Kisumu Airport land acquisition? Has the title transfer process officially started? What is the current operational status of KAPS’ parking revenue systems?
“All matters relating to land will be revisited on May 13th and 14th, when the Committee reconvenes for further engagement with KAA officials,” Hon. Pkosing said.
“We also expect the National Land Commission to attend these sessions to help clarify and resolve all outstanding land issues,” he added.
The Committee has directed KAA to present comprehensive updates and all relevant supporting documents at the next scheduled hearings.