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.
Comments
Good move. Pay all the…
Permalink
Good move. Pay all the foreign lenders and determine your own destiny. The problem with privatization involving foreign nations is that we are a third world country. Their idea of privatization is not the same as ours. When the two corride, being a "shit-hole" country, we lose and lose big time.
Kenya Airways was still paying extremely high salaries to foreigners while it was losing money.
The question is, how many more projects or sectors have we privatized involving foreigners that are on their death bed (ICU) -all on the name of investment.
How long? How long? Are we going to be on the losing side. Our leaders need to listen to speeches by the President of Ghana as to where Africa is headed so they are not left behind.
Kenyatta family owns a big…
Permalink
In reply to Good move. Pay all the… by Anonymous UI (not verified)
Kenyatta family owns a big chunk of Kenya Airways and one of the lenders CBA bank is totally owned by the Kenyatta family, so the state will pay off a loan and buy Kenyatta's stake in KQ... this is corruption at the highest levels, if KQ was unable to repay CBA, the Kenyatta family would be counting losses in Billions at CBA but now the public has to incur that loss
You are very right . after…
Permalink
In reply to Good move. Pay all the… by Anonymous UI (not verified)
You are very right . after the attempt to marge KQ with airport authority failed another trick; CBK and NIC banks have to get the money they lend to Kenya airways . There is no BETTER way than to let Government nationalize KQ. so that mwananchi can pay those debts to the biggest chair holder of CBK namely Kenyatta family and late phillip Ndegwa family who owns NIC bank. The MPs agree to the takeover so that they can order flights when they please . This is the end of KQ which mainly depend on KLM , KLM will not take this shit they will step out . Kenya airways gave up its slot in Germany and sold its Heathrow one recently wait for grounding of Kenya airways as money goes to the richest families in Kenya who can afford private ject . The question is for how long will we be conned . God have mercy on us
Yes run the airline to the…
Permalink
Yes run the airline to the ground by hiring inept clueless westerners you obviously picked from the streets of Poland then nationalize the white elephant to siphoned off tax payers money. What would happen if it was sold off? Would the heavens come crumbling down? Who are the winners in this crappy deal? The banks, the rich and the powerful. We have a den of petty thieves in parliament. Not sure what they have been promised.
How long are our so called…
Permalink
How long are our so called leaders going to be stuck on stupid? You cannot fix KA without fixing JKIA. Its that simple!! After all that money spent, the place is still a zoo. How can JKIA compete with Addis and Kigali in its current state? Wacheni ufala
Amazing how the Airline…
Permalink
Amazing how the Airline managed to secure loans from different banks without any one of them suspecting the downward trend the company was heading to! I was wondering whether banks hold the government liable to loans they offered to the airline! But then again this is Kenya where the rich dont loose their cash but the poor will be Gakuyonized or Urithinized their cash with no one to help them!
You can't cure stupid! Which…
Permalink
You can't cure stupid! Which government corporation survives on it's own in Kenya? KQ is another bottomless hole to suck money from the pockets of ordinary Kenyans into the pockets of the tenderprenuers. The airline should be privatized 100%. National airlines are so 1960!
Add new comment