A recent disclosure from the National Treasury reveals that the Kenyan government is set to pay an additional Sh4.7 billion to two Chinese contractors, Anhui Civil Engineering Group (ACEG) and China Aero Technology Engineering International Corporation (Catic), as part of an out-of-court settlement related to the cancellation of a tender for the construction of the second terminal at Jomo Kenyatta International Airport (JKIA) eight years ago.

According to the document, the Kenya Airports Authority (KAA) and the Chinese joint venture reached a final settlement earlier this year, marking the conclusion of a mediation process.

The settlement agreement, executed on May 26, 2023, seeks approval for the outstanding amount of Sh4.7 billion.

This payment follows a significant reduction from the joint venture's initial demand of Sh17.6 billion. With this award, the total payment to the contractors for the new terminal stands at Sh8.9 billion.

The Green Field Terminal project, slated to be situated 0.75–1.5km east of Terminal 1 at JKIA, was originally budgeted at Sh56 billion.

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However, the KAA cancelled the tender in March 2016, citing material differences between the terms of the request for proposal (RFP) and the construction contract.

Former KAA managing director Johnny Andersen informed Parliament in 2019 that the contractors had submitted a claim of Sh17.6 billion in November 2017, covering various expenses such as preparation of the bill of quantities, extra costs, value-added tax (VAT), interest, and penalties.

Despite moving to the International Court of Arbitration seeking the funds, the Chinese contractors opted for an out-of-court settlement after President William Ruto's government expressed its commitment to revive the project.

Transport Cabinet Secretary Kipchumba Murkomen, in June, announced the resolution, stating, "There is good news that we have agreed, and we are moving through the last stages of confirming that agreement to settle the amount owed to the firms for cancelling their tender mid-way."

Murkomen assured that a new tender for the construction of a terminal at JKIA would be floated within two months, with the award expected in January.

However, these payments for work not delivered highlight concerns over the country's procurement processes, raising questions about the value taxpayers receive for their money.