This archive report was first published on 23 July 2019.
On July 23, 2019, Kenya's parliament took a significant step towards nationalising Kenya Airways, with MPs unanimously adopting the report of the Transport Committee.
The move is expected to pave the way for the repayment of the airline's debts, which stand at Sh23.4 billion, owed to various banks including CBA Group, Equity Bank, National Bank, Co-operative Bank, DTB Bank, and KCB Group.
According to the committee chairman, David Pkosing, the passage of the report marks a new dawn for the country's aviation sector, with the potential to increase Kenya Airways' income by opening up new markets.
MPs were adamant that the airline's debts should be shared by investors, rather than being paid by taxpayers alone, and that taxpayers should not be made to bear the cost of management mistakes.
The adoption of the report brings an end to a proposal by KQ on the Privately Initiated Investment Proposal (PIIP), which had suggested operating JKIA for 30 years, a proposal that the committee rejected.
As part of the nationalisation process, there will be a rationalisation of staff at KQ, with the aim of retaining existing staff and harmonising their terms of service and remuneration.
