Swiss firm signs JKIA duty free shops deal

Kenya Airports Authority has signed a ten-year concession agreement with Dufry International allowing the Swiss firm to run the multi-million duty free retail services at the Jomo Kenyatta International Airport.

The KAA said in a statement yesterday the agreement was signed Wednesday last week, a day after the High court dismissed a petition by Dubai-based Suzan General challenging the award of the long standing tender.

The Single Master Licence allows the Swiss company to run tax free shops, food and beverage restaurants, a communication and phone centre, and foreign exchange service bureau.

The concessionaire will stock local and international brands of cigarettes, spirits, fine food, cosmetics, perfumes and, fashion and assorted accessories at the departure of Terminal 1A until 2024.

KAA managing director Lucy Mbugua said Dufry would offer JKIA's over six million passengers annually “superior airport experience”.

“This will further enhance JKIA's status of being the preferred airport system hub in the (Eastern and Central)region” she said.

The award of the tender has been marred in bitter controversies since February when the Public Procurement Oversight Authority annulled a tender awarded in December 2013 to another Swiss firm, Nuance Group.

Dufry was one of the three firms – together with Unifree Duty Free and Suzan General Trading and Flemingo International– that successfully petitioned PPOA to cancel the deal with Nuance citing irregularities.

That paved way for a re-tendering process where Dufry was rated the best.

Suzan General however moved to the High court mid last month after its plea before Public Procurement Administrative Review Board earlier to have the tender cancelled was rejected.

Dufry is reported to have since acquired Nuance for $1.7 billion(Sh151.47 billion).

“Dufry's new business in Kenya will allow us to further develop the business in Africa,” chief executive Julian Diaz said in the KAA statement.

JKIA has lacked duty free shops since August 1, 2013 when KAA forcefully evicted Kamlesh Pattni's Diplomatic Duty Free Ltd upon expiry of its 25-year lease. Pattni unconditionally withdrew cases he had filed against the State on September 16 and surrendered the shops.

-The-star.co.ke