2 Mar 2017 in National Assembly:
KAA is also charged with the responsibility of providing such amenities or facilities for passengers and other persons making use of services or facilities provided by the Authority as may appear necessary or desirable to the board. Finally, it approves the establishment of private airstrips and control of operations thereof. KAA manages four international airports namely Jomo Kenyatta International Airport, Moi International Airport, Eldoret International Airport and Kisumu International Airport. The Authority also manages four other domestic airports namely Wilson Airport, Malindi Airport, Lokichoggio Airport and Wajir Airport. It also manages two airstrips namely Ukunda and Manda. The Authority is ...
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2 Mar 2017 in National Assembly:
From April, 1989 to 2013, major operators of Duty Free Shops at the Jomo Kenyatta International Airport and Moi International Airport were Diplomatic Duty Free Limited and its closely related entity, World Duty Free Company Limited, which trades as Kenya Duty Free Complex Limited. It is closely related to the Duty-Free Company Limited which trades as the Kenya Duty- Free Complex Limited. The basis of this operation was an agreement entered into on 27th April 1989 between the Government of Kenya and the House of Perfume. The agreement heavily favoured the House of Perfume by giving it exclusive rights to ...
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2 Mar 2017 in National Assembly:
Thank you, Hon. Speaker once again. The agreement that was signed between the Kenya Government and the World Duty Free Shops heavily favoured the House of Perfume in respect of the 3,000 square metres of duty free space at the Jomo Kenyatta International Airport and 2000 square metres of duty free premises at the Moi International Airport for a term of ten years, which was renewable upon expiry. Some of the features, for the benefit of the Members, were as follows: 1. The House of Perfume would have the exclusive right to operate duty free facilities at the premises and ...
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2 Mar 2017 in National Assembly:
However, numerous public officers raised concerns regarding these agreements. As you would notice from what I explained earlier, it heavily favoured the House of Perfume. It raised a lot of concern from different departments of the Government and in a letter dated 28th April 1989, the Director of Aerodromes wrote to the Permanent Secretary for Internal Security questioning the wisdom in granting exclusive rights to the House of Perfume. Again, on 29th January 1990, the Director wrote to the PS, Ministry of Internal Security, raising concerns about why the House of Perfume was operating in restricted areas with exclusive rights ...
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2 Mar 2017 in National Assembly:
behalf of the Government was done in accordance with the laws of Kenya. The agreement was not vetted by the office, at least, from the records that I have, prior to execution from a legal point of view. Therefore, all the conditions precedent to the effectiveness of the agreement were not met. The legal effect is that the agreement never came into force at all. Neither party can, therefore, rely on it to justify any action and/or omission”. The Attorney-General was never consulted. Nobody sought legal advice before this agreement was signed as is usually the case. That tells you ...
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2 Mar 2017 in National Assembly:
On the 15th August 1996, the Monopolies and Prices Commission emphatically stated that the agreement was not only unwise, but was also illegal for contravening the Restrictive Trade Practises, Monopolies and Practises Control Act. From the foregoing, it is evident that numerous persons were concerned about the 1989 agreement. The House of Perfumes was a trading name used by the World Duty Free shops, which was the contracted company. World Duty Free is a company registered in the Isle of Man with the following as shareholders: Nazzir Ibrahim Ali and Dinki International, SA, a South African Company, owned by Nazzir ...
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2 Mar 2017 in National Assembly:
Mr. Kamlesh Pattni claimed that he had purchased all the shares in the World Duty Free Shops registered in the Isle of Man and that he was consequently the owner of the company. Mr. Nazzir Ibrahim Ali denied having sold any shares to Kamlesh Pattni. The two protagonists engaged in, perhaps, the most acrimonious dispute at that time culminating in the expulsion of Nazzir Ibrahim from Kenya. All of us remember what Kamlesh Pattni was capable of. Arising from the dispute, Mr. Nazzir was expelled from Kenya. Having had his rival expelled from Kenya, Mr. Kamlesh Pattni became the sole ...
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2 Mar 2017 in National Assembly:
through bribery to the Head of State in this country. This led to Mr. Ali losing the arbitration since the contract was executed fraudulently. Having declared that he was the owner of the World Duty Free (WDF), registered in the Isle of Man, Mr Pattni after having traded as the owner of WDF Ltd for a period of time, requested that the leases be transferred to the Diplomatic Duty Free, a locally incorporated company and approximately 92 per cent of space which was occupied by the WDF was transferred to the Diplomatic Duty Free. A number of leases expired on ...
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2 Mar 2017 in National Assembly:
Operation of airport lounges is part of KAA’s core business. Therefore, these have been restored and they paved way for KAA to engage in procurement processes of new duty free master concessionaires. I have given some detailed background from when the WDF shops were established at our airports, the kinds of agreements that were entered into that heavily favoured them and the companies we dealt with that were registered at the Isle of Man by foreigners showing how the locals were not involved. Obviously, we know how locals could have been involved in this. Having given this background following our ...
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2 Mar 2017 in National Assembly:
stating that all court cases filed by the World Duty Free and its associates or subsidiary companies against the KAA by the World Duty Free Shops had been withdrawn. However, Eng. Kamau did not table anything to show before the Committee that the cases had been withdrawn. So, during the taking of evidence, we established that there was nothing to show that the matter had been resolved as publicised by the then CS. Further, Eng. Kamau did not follow through to ensure that his public pronouncements on the 16th September 2013 were fully implemented and a deed of settlement entered ...
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