This archive report was first published on 24 July 2019.
Published on July 24, 2019, Kenya Airways is on the cusp of a major transformation after the National Assembly Transport committee's proposal to nationalize the airline was unanimously approved by MPs.
The airline, which is 48.9 percent owned by the government, 38.1 percent by KQ Lenders Company, and 7.8 percent by Air France-KLM, is struggling to turn a profit.
As part of the nationalization process, the government aims to clear the airline's debts, which stand at Sh3.1 billion to CBA Group, Sh5.2 billion to Equity Bank, Sh3.5 billion to National Bank, Sh3.3 billion to Co-operative Bank, Sh3.3 billion to DTB Bank, and Sh2.1 billion to KCB Group.
According to National Assembly Transport Committee Chairman David Pkosing, the approval of the proposal marks the beginning of a process that will restore Kenya Airways 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.
