The national assembly has adopted the report of the Transport Committee to nationalize Kenya Airways. Parliament has approved nationalization of Kenya airways as part of efforts to turn around the fortunes of the airline, which now has two years to implement recommendations in the report.
Plans to nationalize the struggling airline began this year after government floated an initial proposal by KQ to merge with Kenya Airports Authority. The adoption of the report now brings to an end a proposal by KQ on the Privately Initiated Investment Proposal (PIIP) where the carrier had pegged its survival in operating JKIA for 30 years.
“This will now result in a whole restructuring. Parliament has given approval to the Executive to implement and do a proper restructuring of the aviation sector. Remember earlier we had complained about losing competitiveness to neighbours like Ethiopia and Rwanda. The Balance sheet for the aviation company will be a very good one to make KQ even acquire more other fleets,” David Pkosing, Chairman Transport Committee.
The government will be forced to pay off KQ debtors in a bid to pave way for the nationalisation of the national carrier and there will have to be a rationalisation of staff at KQ with the main aim of retaining existing staff and harmonising the terms of service and remuneration as had been proposed.
A recommendation of the report had suggested that Kenya Airport Authority, Jomo Kenyatta International Aviation and Kenya Airways to be put under Kenya Aviation Holding Group. The aviation holding company will have four subsidiaries namely, Kenya Airways, Kenya Airports Authority, Jomo Kenyatta International Airport Company and an Aviation College.