A top Kenyan bank has been ordered to explain the circumstances in which Jubilee politician-cum-businessman Peter Muthoka was able to use airport land to secure a Sh510 million loan.
The Public Investments Committee (PIC) has summoned officials of Standard Chartered Bank, alongside Treasury Cabinet secretary, and the National Land Commission to explain how part of the land at the Jomo Kenyatta International Airport (JKIA) was used by a private firm to secure a commercial loan.
“We will summon the CS Treasury, NLC and Standard Chartered bank to know how Transglobal secured an I.R number which it used to secure the loan without the authority of the Treasury. We also want to know how the original lease of 20 years was extended to 40 years and latter 60 years,” PIC chairman Abdulswamad Nassir said.
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Muthoka, who managed President Uhuru Kenyatta's campaign in the Ukambani region, acquired a Sh510 million through his logistics firm Transglobal Cargo Centre Limited.
The revelation was made after Auditor-General Edward Ouko released an audit report of the Kenya Airports Authority (KAA).
Transglobal Cargo Centre had signed the 20-year lease agreement with KAA to operate freight services at the Jomo Kenyatta International Airport.
The lease was later extended to forty years in unclear circumstances.