This archive report was first published on 1 July 2020.
Wednesday, July 1, 2020, marked a challenging day for the Kenya Airports Authority (KAA) as it announced the suspension of several key projects due to the Covid-19 pandemic's devastating impact on its revenue.
According to KAA managing director Alex Gitari, the agency is working to cut costs in response to reduced operations, which have significantly eaten into their revenues. Speaking during a webinar session organised by the Airports Council International (ACI), Mr Gitari stated that they need to maintain the funds they have at the moment, which can sustain them for the next six months before seeking government support.
'We had to relook into our capital expenditure project and reanalyse our priorities and rationalise budget by suspending for some time any project not critical for safety and operation of our customers. As a result of that, we have put aside significant projects on hold,' said Mr Gitari.
Mr Gitari did not disclose the list of suspended projects, but mentioned that some of the projects on hold include the multi-billion shilling second runway. The agency is currently negotiating with long-term financiers to restructure loans and provide cash flow relief.
As the authority struggles to survive on limited earnings from cargo flights and reserve funds, it has already communicated its need for government support to a 'given point'. KAA had previously given Treasury Sh12 billion in special dividends in December 2019 to support government programmes.
