Kenya Airways Set to Become a State Company

Kenya Airways is set to become a State corporation after MPs on Tuesday unanimously approved a proposal by National Assembly Transport committee to nationalize the airline.

The adoption of the proposal paves the way for the government to clear all debts KQ owes to lenders in a bid to nationalize it.

KQ is 48.9 percent owned by the government, 38.1 percent by KQ Lenders Company, while 7.8 percent stake is held by Air France-KLM.

The nationalization of the loss-making KQ is aimed at turning around its fortunes.

The struggling airline currently owes CBA Group Sh3.1 billion, Equity Bank (Sh5.2 billion), National Bank (Sh3.5 billion), Co-operative Bank (Sh3.3 billion), DTB Bank (Sh3.3 billion) and KCB Group (Sh2.1 billion).

National Assembly Transport Committee Chairman David Pkosing said the approval of the proposal is the beginning of a process that will restore KQ to its former glory.

“This is a new dawn to the country’s aviation sector and if well implemented, it will open new markets to Kenya Airways and thereby increase their income,” Pkosing told Daily Nation.

In its report, the committee also recommended that Kenya Airways, Kenya Airports Authority, and Jomo Kenyatta International Airport (JKIA) be put under Kenya Aviation Holding Group.