Jomo Kenyatta International Airport (JKIA) is the largest international airport in Kenya and a major aviation hub in East Africa. Located in Nairobi, the capital city of Kenya, JKIA serves as the main gateway for both domestic and international flights to and from the country.
With its strategic location and modern facilities, JKIA has become a vital hub for air travel, handling millions of passengers and tons of cargo annually.
JKIA, named after the first President of Kenya, Jomo Kenyatta, is managed and operated by the Kenya Airports Authority (KAA), a state corporation responsible for the development, operation, and maintenance of airports in Kenya.
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The airport boasts a wide range of facilities and services, including multiple terminals for domestic and international flights, cargo handling facilities, a VIP terminal, and various amenities for passengers, such as lounges, shopping, and dining options.
As one of the busiest airports in Africa, JKIA serves as a major gateway for travelers from around the world, connecting Kenya to various international destinations in Europe, Asia, the Middle East, and Africa.
The airport serves as a hub for many international airlines, including Kenya Airways, the national carrier of Kenya, as well as other major airlines such as Emirates, Ethiopian Airlines, Turkish Airlines, and Lufthansa, among others.
In this article, we delve into the success story of Nyeri entrepreneurs profiting from their Catering Units at the airport, earning billions.
The Journey of Creating the JKIA Catering Company
In 2014, German airline Deutsche Lufthansa AG secured a lucrative deal with the Kenya Airports Authority (KAA) to set up an in-flight catering kitchen at Jomo Kenyatta International Airport (JKIA) in Nairobi, Kenya.
The deal, which was awarded through a tender process, brought an end to a long-standing monopoly held by Nas Servair since 1949. Lufthansa partnered with a consortium of local shareholders called JV Partners, led by Apatana Investments, to navigate the Kenyan commercial landscape and operate the in-flight kitchen.
The JV Partners consortium, which included Apatana Investments and several other influential businessmen from Nyeri County in Kenya, secured a 25-year deal to build and operate the in-flight kitchen at JKIA.
The kitchen was equipped with state-of-the-art culinary equipment to prepare meals for millions of passengers on flights from JKIA during the contract period.
The deal was estimated to generate revenue of $411.6 million (Sh. 48 billion) in concession fees alone, indicating the significant profitability of the venture.
With at least 20 international airlines and seven domestic airlines operating from JKIA, and dozens of flights departing from the airport each week, the demand for in-flight catering services was high.
Nas Servair and JV Partners, as the two main players in this market, were expected to benefit from the growing aviation industry in Kenya.
Apatana Investments, led by prominent individuals from Nyeri County, played a crucial role in the consortium by providing capital and local expertise to navigate the Kenyan business environment.
Former Mathira MP Eliud Matu Wamae and former KAA board member Isaac Samson Githuthu were key figures representing Apatana Investments in media briefings.
However, the shareholding list of Apatana Investments revealed that it included several influential businessmen and public figures from Nyeri County.
Notable shareholders of Apatana Investments included Nyeri Senator Ephraim Mwangi Maina, former Kenya Defence Forces Chief of General Staff Julius Karangi, former Kenya Tea Development Agency (KTDA) chairperson Peter Kanyago, and Ms Mary Wambui Mwai, who claimed to be former late President Mwai Kibaki’s widow.
Other shareholders from Nyeri County and other parts of Central Kenya included Masinde Muliro University of Science and Technology (MMUST) Chancellor Peter Wanyaga Muthoka, Kenya’s former Ambassador to the UK Joseph Muchemi, businessman Isaac Samson Githuthu, former KAA board member Isaac Gathungu Wanjohi, businessman Gabriel Gatheru Rwamba, prominent engineer Isaiah Wambugu Mutonyi, and former International Criminal Tribunal for Rwanda judge Lee Gacuiga Muthoga, among others.
Based on the shareholding, it was speculated that Isaac Gathungu Wanjohi, who owned the largest number of shares individually and through his company Nairobi Nominees Limited, likely had a significant influence over Apatana Investments.
He was also the board chairman at Development Bank of Kenya and had a substantial stake in Francis Drummond & Company Limited, which owned 50% of Nairobi Nominees Limited.
Other key shareholders, such as Eliud Matu Wamae and Isaac Samson Githuthu, also held significant shares in Apatana Investments.
The deal between Lufthansa, JV Partners, and KAA was operationalized in 2015 after the construction of the in-flight kitchen was completed. The contract was set to expire in 2040, allowing JV Partners to operate the kitchen and remit concession fees to KAA for a period of 25 years.
