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Costly Cancellation: Taxpayers Hit With Sh243m Bill Over Scrapped Airport Deal!

Published 1 week ago1 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Costly Cancellation: Taxpayers Hit With Sh243m Bill Over Scrapped Airport Deal!

The cancellation of the plan to hand over control of Jomo Kenyatta International Airport (JKIA) in Nairobi to India's Adani Group has left Kenyan taxpayers facing a massive Sh243.2 million legal bill. This astronomical sum is nearly 20 times the original budget initially set aside for the controversial privatization scheme, according to an internal government document seen by The Standard.

Details of this significant financial fallout are outlined in a September 25 advisory letter issued by the Kenya Airports Authority (KAA) to the Ministry of Transport. The document exposes the substantial costs incurred even though the multibillion-shilling deal was ultimately scrapped by President William Ruto last year, preventing the actual transfer of airport control. This legal expenditure highlights the severe financial implications that could arise from botched privatization attempts, even when they do not reach completion.

The situation underscores a critical financial burden on the public, emphasizing that the termination of complex government projects, especially those involving national infrastructure, can still lead to considerable fiscal strain. The Sh243.2 million legal bill serves as a tangible example of the costs associated with withdrawing from high-profile agreements, irrespective of the initial intent to privatize the nation's main airport.

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