Duty-free shop fails to bar KAA from leasing space – Business Daily
A duty free shop at the International departures area of Terminal 1A at the Jomo Kenyatta International Airport. FILE PHOTO | NMG
An operator of a duty-free shop has failed in its bid to block Kenya Airports Authority (KAA) from leasing a contested space at the Jomo Kenyatta International Airport (JKIA), pending the conclusion of a petition it has filed.
High Court judge Chacha Mwita declined to temporarily stop KAA from leasing the duty-free shops on terminals B and C, saying the company (Maya Duty Free Ltd) can be paid damages if the case is successful.
The judge said KAA is a public body that would easily compensate Maya and the loss to be suffered if at all, would be known or can be quantified and the proprietor can recoup the loss.
“On the above facts, I am not persuaded that Maya has satisfied the test for granting a temporary injunction. That is to say, Maya has not demonstrated a prima facie case with a probability of success,” the judge said.
The company went to court, seeking temporary orders, restraining KAA from leasing the space, saying it has been operating the shop since October 2007, a contract that lasted about 12 years.
The lease, which expired on April 30, 2019, was renewed for three years before KAA decided to refurbish the airport and the operator was granted a temporary occupation licence.
Maya said KAA may lease the space to third parties after inviting bids through an advertisement.
According to Maya, the suit would be rendered useless if KAA is not restrained from leasing the space.
KAA opposed the case, arguing that following rehabilitation of the terminal building, the premises no longer exist and Maya had not demonstrated the nexus between the spaces it seeks an injunction on and the lots, which are the subject of the tender.
KAA further said that upon the expiry of the lease, Maya’s rights were extinguished, and by accepting the allocation of temporary licences, the firm cannot enforce the lease.
Further, the court heard that Maya was also at liberty to participate in the tender and bid.
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