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Office of the Auditor-General REPUBLIC OF KENYA Public Disclosure Authorized OFFICE OF THE AUDITOR-GENERAL REPORT THE WORLD BANK RECEIVED IN CD'S OFFICE FReceived bY .................... Public Disclosure Authorized OF Action bY.................... cc - THE AUDITOR-GENERAL ON Public Disclosure Authorized THE FINANCIAL STATEMENTS OF ON NORTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT (NCTIP) CREDIT NO. 393014571KE FOR THE YEAR ENDED Public Disclosure Authorized 30 JUNE 2016 KENYA AIRPORTS AUTHORITY 一 不 看× Kenya Airports Authority NORTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT (NCTIP) KENYA AIRPORTS AUTHORITY PROJECT CREDIT NUMBER 3930-KE, ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 3 0, 2016 KENYA AIRPORTS AUTHORITY NOTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 0TH JUNE 2016 CONTENTS PAGE 1. BOARD OF DIRECTORS AND COMPANY INFORMATION.......................... ...... 1 -13 2. SENIOR MANAGEMENT TEAM ................................................... 14-18 3. COMPANY OBLECTIVE AND PROJECT INFORMATION... .............................. 19-23 4. FUN D STA TEM EN T ............................................................................... 24 5. STATEMENT OF DIRECTORS RESPONSIBILITY........................................25 6. STATEMENT OF RECEIPTS AND PAYMENTS..........................................26 7. STATEMENT OF FINANCIAL POSITION.............................................27 8. STATEMENT OF CASH FLOW.....................................................28 9. NOTES TO THE FINANCIAL STATEMENTS...........................................29-35. KENYA AIRPORTS AUTHORITY NOTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 0Tn JUNE 2016 BOARD OF DIRECTORS AND COMPANY INFORMATION KEY ENTITY INFORMATION Background Information Kenya Airports Authority is a body corporate in Kenya formed under the Kenya Airports Authority Act Cap 395, and is domiciled in Kenya. Principal Activities The principal activities of Kenya Airports Authority are: * To construct, operate and maintain aerodromes and other related facilities; * To construct or maintain aerodromes on an agency basis on the request of any Government department: * To provide such other amenities or facilities for passengers and other persons making use of the services or the facilities provided by the Authority * Construct any other necessary or desirable works required for the purposes of the Authority; * Control the construction and use of prescribed aerodromes; * Carry on any business that may be necessary or desirable for the purposes of the Authority and act as an agent for the Government in the provision of any agreed functions; * Acquire, construct, manufacture, maintain or repair any works, plants or apparatus necessary or desirable for the purposes of the Authority; * Determine, impose and levy rates, charges, dues or fees for any services performed by the Authority, or for use by any person of the facilities provided by the Authority, or for the grant to any person of a licence, permit or certificate. I KENYA AIRPORTS AUTHORITY PROJECT NOTHERN CORRIDOR TRANSPORT IMPROVEMENT ANNUAL REPORT AND FINANCIAL STATEMENTS 2016 FOR THE YEAR ENDED 3 0 TH JUNE KEY ENTITY INFORMATION (Continued) Risk Management Policy Statement for the management of risk. This KAA to apply a consistent framework to It is the policy of strategies, processes and infrastructure incorporates the application of risk management support the Vision for risk management. risk management as The strategic imperative of the risk management framework is to develop determine the appetite for risk (choice and assist the Board and management and to a core capability to risk (economic and operating sensitivities) of strategies and actions) and tolerance communicate these throughout KAA. that the KAA pursues a structured The purpose of the risk management policy is to ensure approach to management of risk. Key Risk * Risk of Fire at airport and its environs * Airport security risks * Land grabbing and encroachment * Lack of robust performance management system * Over reliance on aeronautical revenue tenders * Risk associated with improperly structured airfield * Risk of power failure on runway and and newer airports within the region * Increased competition from recently upgraded * In adequate business continuity planning * Risk of unauthorized access to ICT system * Risk of delay in implementation of capital projects * Brand erosion due to media misrepresentation * Risk of litigations 2 KENYA AIRPORTS AUTHORITY NOTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 *' JUNE 2016 KEY ENTITY INFORMATION (Continued) Directors The Directors who served the entity during the year were as follows: 1. Gen.Rtd.(Dr.) Julius W. Karangi Chairman -Appointed on 24 /06/2016 2. IG. (Rtd) David Kimaiyo, MGH, CBS Chairman -Retired on 24 /06/2016 3. Mr. Nicholas Bodo Ag. Managing Director- Appointed on 12/07/2016 4. Mr. Yatich Kangugo Ag. Managing Director - Ceased on 12/07/2016 5. Mr. Gabriel Comba Kivuti Director -Appointed on 4/03/2013 -Ceased 02/10/2015 6. Mr. Hassan Maalim Kulow Director -Appointed on 04/03/2013 -Ceased 02/10/2015 7. Capt. Bootsy Mutiso Director -Appointed on 21/04/2015 8. Ms. Susan Kiama Director -Appointed on 11/10/2015 9. Ms. Jacqueline Oyuyo Director -Appointed on 02/10/2015 -Ceased 31/05/2016 10. Mr. Isaac Newton Onyango Director -Appointed on 02/10/2015 -Ceased 31/05/2016 10. Mr. Kevin Kariuki Kihara Director -Appointed on 21/04/2015 -Ceased 31/05/2016 11. Mr. Mbatia Kimani Director -Appointed on 31/05/2016 12. Mr. William Ole Mayiani Director -Appointed on 31/05/2016 13. Mrs. Jeridah Bosibori Mbaka Director -Appointed on 31/05/2016 14. Mr. Irungu Nyakera Director Principal Secretary Ministry of Transport & Infrastructure KENYA AIRPORTS AUTHORITY NOTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 " JUNE 2016 KEY ENTITY INFORMATION (Continued) 15. Dr. Kamau Thugge, EBS Director Principal Secretary National Treasury 16. Amb.(DR) Monica K. Juma, EBS Director Principal Secretary Ministry of Interior & Coordination of National Government 17. Ms. Eunice Kigen Alternate Director National Treasury 18. Mr. Arthur A. Osiya Alternate Director Ministry of Interior & Coordination of National Government 19. Mr. Samwel Karanja Alternate Director Ministry of Transport and Infrastructure 20. Dr. Karanja Kibicho Director Principal Secretary Ministry of Interior & Coordination of National Government Corporation Secretary/General Counsel CS Katherine N. Kisila Airport North Road P.O. Box 19001-00501 NAIROBI Registered Office/Corporate Headquarter Kenya Airports Authority- Headquarters Airport North Road P.O. Box 19001-00501 NAIROBI Tel: 6611000/6612000/822111 Fax: 020-822078 Email: [email protected] Www: Kenyaairports.go.ke BRANCH NETWORK Jomo Kenyatta International Airport P. 0. Box 19087-00501 NAIROBI Tel: 020-822111 Fax: 822930 4 KENYA AIRPORTS AUTHORITY NOTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30"' JUNE 2016 KEY ENTITY INFORMATION (Continued) Moi International Airport P. O. Box 93904-80115 MOMBASA Tel: 041-3433211 Fax: 434434 Eldoret International Airport P. 0. Box 2323 ELDORET Tel: 053-63377/63844/5 Fax: 61337 Kisumu International Airport P. O. Box 13 KISUMU Tel: 057- 41976 Fax: 057-2021857 Lokichoggio Airport P. 0. Box 88 LOKICHOGIO Tel: 054-32266 Fax:054-32440 Wilson Airport P. 0. Box 19005 NAIROBI Tel: 501941/2/3 Fax: 020-6001496 Malindi Airport P. 0. Box 67 MALINDI Tel: 042-31201 Fax: 20806 Kitale Airstrip P. O. Box 1718 KITALE Tel: 054- 31017 5 KENYA AIRPORTS AUTHORITY NOTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 0 TI JUNE 2016 KEY ENTITY INFORMATION (Continued) Wajir Airport P. O. Box 512 WAJIR Tel: 046-421019 Fax: 421362 Ukunda Airstrip P. O. Box 139 KWALE Tel: 040-3202126 Fax: 3203246 Manda Airstrip P. O. Box 167 LAMU Tel: 042-633018 Fax: 63218 Isiolo Airport P.O. Box 817 - 60300 ISIOLO Nanyuki Airstrip P. 0. Box 1436- 10400 NANYUKI Kabunde Airstrip HOMABAY Principal Bankers Barclays Bank of Kenya limited Enterprise Road Branch P. 0. Box 18060-Nairobi NAIROBI Tel: +254 -020-530700-1 Fax: 020-543388. Citibank N.A Upper Hill Branch P.O Box 30711-00100 NAIROBI Tel: +254 -020-2754800 Fax: 020-2714810-1. 6 KENYA AIRPORTS AUTHORITY NOTHERN CORRIDOR TRANSPORT IMPROVEMENT PROJECT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30"' JUNE 2016 KEY ENTITY INFORMATION (Continued) Family Bank Limited Family Bank Towers-Corporate Branch P.O.Box 74145-00200 NAIROBI Tel: +254 -020-318173 Fax: 020-318174. Kenya Commercial Bank Moi Avenue Branch P.O.Box 48400-00 100 NAIROBI Tel: +254 327000, Fax: 2216405 National Bank of Kenya Limited Jomo Kenyatta International Branch P. 0. Box 19230-00501-GPO Nairobi, Kenya Tel: +254-020-827286, 0710-223623 Fax 020-827254 Standard Chartered Bank of Kenya limited Kenyatta Avenue Branch P.O. Box 30001-00100 NAIROBI. Tel: +254-020-329400 Fax 020-2213233 Equity Bank Limited Equity Centre, P.O Box 75104-00200 Nairobi, Kenya Tel: +254-020-226200 Fax 020-2737276 NIC Bank Limited NIC House, Masaba Road P.O Box 44599-00100 Nairobi, Kenya Tel: +254-020-2888217 Fax 020-2888350 Independent Auditor Auditor General Kenya National Audit Office Anniversary Towers P. 0. Box 30084-00 100 NAIROBI Tel: +254-20-335777 Fax: +254-20-330829 7 AIRPORTS AUTHORITY KENYA PROJECT
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