TERMINAL 1A DUTY FREE OPERATOR SELECTED BY KAA
(Posted 23rd October 2014)
The Kenya Airport Authority has announced the award of the tender for the building and operation of duty free shops and for a range of other services to Swiss global duty free operator Dufry International following a legal case by a Gulf based company which had also competed for the same services being dismissed by a High Court judge for lacking merit.
Dufry, a truly global operator after their acquisition earlier this year of rival Nuance, will now start work to put up duty free shops at the departure level of Terminal 1A at Jomo Kenyatta International Airport under a 10 year concession, which will at last see a duty free company of international repute come to Kenya and begin to operate the soon to open shops at JKIA’s most modern terminal.
After the merger with Nuance does Dufry claim a combined global market share of 15 percent, nearly twice that of closes rival WDF which commands an 8 percent global market share. Dufry has a presence in some 63 countries, covering 239 airports to which Nairobi can now be added making it 240.
The concession of just 10 years however appears to be relatively short and hence is in favour of landlord KAA which no doubt expects to raise higher rents and royalties when the concession comes up for renewal or re-tendering in 2023.
