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Capital concierge takes KAA to court over JKIA contract dispute

Huldah Matara by Huldah Matara
August 15, 2024
in News
Reading Time: 1 min read

Capital International Concierge Services Limited has filed a lawsuit against the Kenya Airports Authority (KAA), accusing the state agency of frustrating a contract to set up a meet-and-greet service lounge at Jomo Kenyatta International Airport (JKIA). The firm claims it won the tender nearly four years ago but has been unable to operate due to KAA’s refusal to provide the necessary space.

In court documents, David Mberiah, chairman and director of Capital International Concierge Services, stated that KAA’s actions have resulted in losses exceeding KES 300 million in expected revenue. The meet-and-greet service, which involves assisting travelers in clearing airport arrival formalities, was to be facilitated through a lounge that the firm planned to establish at the airport.

“The petitioner avers that even after executing the said contract, the 1st respondent (KAA) impeded, hindered, frustrated, and prevented the petitioner from rendering meet-and-greet services at JKIA,” Mberiah said in the court filing.

KAA, however, disputed the claims, arguing that Capital International Concierge was not the sole successful bidder for the tender, which had two categories. The authority also denied any obligation to provide lounge facilities as part of the contract, stating, “As per the Authority’s concession policy, lounge services are a different category of business and their allocation is subject to a competitive procurement process.”

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The legal battle has intensified as the firm, through lawyer Henry Kurauka, accused KAA of demanding a payment of KES 2.87 million from them while simultaneously advertising a new tender for similar services for the 2023-2024 period. Kurauka further alleged that KAA’s actions are discriminatory and intended to allow other entities to operate without adhering to the financial terms stipulated in the tender agreement.

The High Court, presided over by Justice Lawrence Mugambi, has scheduled the hearing for November 5, 2024.

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Huldah Matara

Huldah Matara

Versatile multimedia journalist with a keen interest in compelling stories that resonate with my audience. Reach out on huldahmatara12@gmail.com

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