Gov't Seeks Strategic Partner To Buy Out KQ's Ksh.170 Billion Debt

 

Transport CS Kipchumba Murkomen speaking before the Senate’s Roads and Transport Committee. PHOTO| COURTESY

By Faizal Ahmed

The government is looking for a strategic partner to buy out Kenya Airways’ Ksh.170 billion debt as it moves towards cutting funding for the national carrier by the end of the year. 

Speaking before the Senate Transport and Infrastructure Committee, Transport CS Kipchumba Murkomen traced the genesis of the airline's woes back to the Mawingu project which he says put the national carrier in a tailspin. 

Murkomen stated that bad investments put the airline in its current financial struggles.

"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.

Kitui Senator Enoch Wambua stated that if the airline is still making losses, then the government should nest down to save taxpayers' money. 

"Kenyans are asking a basic question. What are you going to do differently to help this airline and wouldn’t it be better to just shut it down and start afresh?" posed Wambua.

Murkomen however stated that the airline 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 $1.6B and if that is taken away today then KQ will be profitable the next day," said Murkomen.

Murkomen added that they are looking at renovating and expanding the Jomo Kenyatta International Airport to bring it to world-class standards.