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Ground Breaking Postponed

Kenya Airport Authority fallout reaches hotel project

Wolfgang H. Thome, eTN  Mar 22, 2010

Now that it is clear that the CEO of the Kenya Airports Authority is indeed retiring, a newly-assertive board of directors under the leadership of a new chairman, is looking reportedly at a range of issues beyond the succession, which itself has come under scrutiny and led to the board canceling the outgoing CEO’s advert only to place their own within days afterwards.
That done, and notice being served to the outgoing CEO that he had overstepped his bounds, the board has now, according to sources in Nairobi, turned their attention to other deals done and signed during the soon former CEO’s reign, which will come to a final end on or about April 3.

The latest victim to this board investigation is the planned ground breaking for a new hotel and convention center, which was due to be built on land given by the Kenya Airports Authority, and which at the time had raised many questions in public over the apparent give away of 90 acres of public land, and prime value land for that matter, adjoining to the international airport on an 80-year lease. The ground-breaking ceremony, which according to some reports from Nairobi, was set for March 24, has been postponed to allow the board to delve into the contractual details and obligations of the investment group, which according to the outgoing CEO at the time, George Muhoho, was to take three years from signing to finishing, something which now appears impossible to achieve.

The entire deal smacked of a quid pro quo, as during a state visit to Qatar only a month prior to the hurried signing of this deal, major loan agreements were signed between Kenya and Qatar for the financing of a new seaport in Lamu – itself a much criticized project, which has attracted massive opposition – and other bilateral aid packages.

Kenya Airport Authority fallout reaches hotel project
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