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Transport Cabinet Secretary Kipchumba Murkomen says the government is still looking for a strategic partner to buy out Kenya Airways’ Sh170 billion debt.
Appearing before the Senate Transport and Infrastructure Committee on Friday, Murkomen said the exchequer plans to stop funding for the national airline before the end of the year.
Murkomen pointed out that bad investments such as the Mawingu project are to blame for the carrier’s current financial woes.
"We are working on a plan to bring in a strategic investor and you will see a communication from the cabinet by June. We plan to stop financial support for the airline by next year but we will have a road map to this by mid this year," said Murkomen.
The cabinet secretary told the committee that Kenya Airways is still commercially viable and would immediately turn a profit once the strategic investor comes in.
"KQ is a very viable company. The only thing that is holding them back is the debt they incurred during project mawingu. The debt is about $1.6 billion and if that is taken away today then KQ will be profitable the next day," said Murkomen.
Murkomen also announced plans by the government to renovate and expand the Jomo Kenyatta International Airport (JKIA) to bring it to world-class standards.
In December 2022, President Ruto held a meeting with officials of Delta Air Lines in Washington, DC, in a bid to sell a controlling stake in Kenya Airways.
“I’m willing to sell the whole of Kenya Airways Plc. I’m not in the business of running an airline that just has a Kenyan flag, that’s not my business,” Ruto told Bloomberg after the meeting.
“Discussions with Delta are at a preliminary stage. The government is looking for partnerships that will make Kenya Airways a profitable entity whatever that means, in whatever configuration, whatever form it takes,” he added.
Majambazi Ngina & Kirubi(expired) families are the main looters of KQ.It must be privatized as the govt should not be in any trading business.I wish US photocopier Kenyans knew US govt left all businesses to private entrepreneurs like Buffet(main shareholder in SWA,BSNF including RailRoad).
Take 3 billion daily stolen in Kenya by 170, gets us to 57 days. We don't need no partners to buy out the debt. We have the money already. Curb corruption, get what's been stolen and Kenya will be the best place to live in.
$1.6 billion debt? I would like to know whether political appointees run this sickly airline.