KAA under fire for missing Sh130m land record and Sh113.9m revenue shortfall
Records from Kenya Airports Parking Services showed parking revenue of 191 million shillings, while KAA’s point-of-sale system recorded only 77 million shillings, a difference of 113.9 million shillings.
The National Assembly has put the Kenya Airports Authority (KAA) on the spot over missing land documents and unexplained revenue shortfalls, as questions mount about the agency’s management of public assets.
During a session on Wednesday, the Public Investments Committee on Commercial Affairs and Energy examined KAA’s audited accounts for four financial years ending in 2022.
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The committee, chaired by Pokot South MP David Pkosing, questioned the acting managing director, Nicholas Bodo, over serious issues involving land records and financial mismatches.
Among the issues that sparked concern was a 3.29-acre plot identified as LR No. 9042/668, worth 130 million shillings.
While KAA’s financial books for 2019/2020 showed the value of the land, it was not listed in the lease records. The land had been said to be handed over to the Kenya Police Service, but auditors flagged a lack of documentation to confirm this.
A presidential directive issued on January 19, 2023, stopped the leasing process. Bodo said the agency was still seeking proper approval to complete the lease, in line with its procedures.
In a move to get clarity, Pkosing asked that the Officer Commanding Police Division in Embakasi East be summoned to provide details on the police’s role in the land issue.
The committee also raised red flags on the handling of land transactions at Kisumu International Airport.
Even though 165 million shillings had been paid, records do not support the total cost of 190.7 million shillings. The committee also found that title transfers for land surrendered to KAA had not yet begun.
Two titles for plots at Kisumu Airport showed conflicting details on land size. These were listed under Municipality/Block No. 1/8 and No. 1/21.
Land merger
Responding to the confusion, Bodo said one title had been handed over after a land merger, a move the Commissioner of Lands had officially acknowledged.
The committee announced that it will carry out an inspection visit to Kisumu to verify the ownership claims and inspect the land, especially where school buildings have reportedly been put up.
Another parcel, measuring 0.867 acres in Embakasi Village and worth 4.3 million shillings, was also under scrutiny.
Almost half of the land (0.47 acres) was allocated to a private party without following due process. Although the courts ruled in favour of KAA, the case remains unsettled as an appeal is still pending.
Bodo said they had reminded the National Land Commission about the issue through a letter sent on April 19, 2024, but the matter had not moved forward.
Apart from land issues, the committee grilled KAA on revenue inconsistencies at Jomo Kenyatta International Airport (JKIA).
Records from Kenya Airports Parking Services (KAPS) showed parking revenue of 191 million shillings, while KAA’s point-of-sale system recorded only 77 million shillings, a difference of 113.9 million shillings.
Bodo told the lawmakers that the gap was due to system delays and misalignments. However, it was revealed that KAPS runs two separate databases, one for internal operations and another linked to KAA’s revenue system.
This raised alarm about the credibility of the figures and the risk of underreporting.
The committee noted that these issues went against several sections of the Public Finance Management Regulations and called for strict enforcement of public asset protection rules.
Pkosing ordered that a thorough check be done to find out how revenue collected by KAPS is shared. He also directed both KAA and KAPS to present their bank records for review.
“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,” Pkosing said.
The committee is now pushing for clear answers on multiple concerns, including the missing 25.6 million shillings from the Kisumu land payments, the progress of the title handover, and the current state of KAPS’ parking revenue systems.
“All matters relating to land will be revisited on May 13 and 14, when the Committee reconvenes for further engagement with KAA officials,” Pkosing told the meeting.
He also said that the National Land Commission would be expected to attend the sessions to help resolve the ongoing land ownership issues.
The committee asked KAA to return with a complete set of records and updates during the upcoming hearings.
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