The government has opened talks with Catic, the Chinese firm whose contract to build the second terminal at the Jomo Kenyatta International Airport (JKIA) was cancelled.
“Discussions are ongoing with the China National Aero-Technology International Engineering Corporation (Catic)” said James Macharia, transport secretary. He went on to say, “We have almost reached a mutual agreement in our discussions, which will save taxpayers a lot of money, the negotiations have been good so far,” said Mr Macharia. The cancellation could mean loss of tax payers money to the tune of millions of shillings in compensation.
The Kenya Airports Authority (KAA) scrapped plans for a new terminal building at JKIA. The construction of this building was launched by President Uhuru Kenyatta in December 2013. The plans have been scrapped due to financial pressures and excess capacity resulting from recent upgrades to already existing facilities.
Catic had been selected to build the Sh56 billion terminal, expected to handle 20 million passengers annually. The cancellation signals a legal battle over compensation.