This archive report was first published on 24 July 2019.
Published on July 24, 2019, Kenya's Parliament has voted in favor of nationalizing Kenya Airways, the country's national airline.
The move, which involves the formation of an Aviation Holding Company to run the country's aviation sector, aims to make the airline more competitive and save it from debt.
Under the new holding company, Kenya Airways will be one of four subsidiaries, alongside the Kenya Airports Authority, Jomo Kenyatta International Airport, and a centralized aviation college.
Major ownership of the airline will remain with the government, with the state owning 48.9% of the company, while Air France KLM owns 7.8% and local banks own 38.1%.
The nationalization is expected to allow the airline to challenge competitors like Ethiopian Airlines and provide financial muscle to acquire more fleets.
According to David Pkosing, the Transport Committee Chairperson, the implementation of the nationalization plan will take two years, with the government potentially having to make compromises to allow the Holding company to effectively run its subsidiaries.
