Government to takeover KQ by August

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Discussions about nationalizing Kenya Airways are set to happen when parliament resumes next week. Stakes for key shareholders such as a consortium of local banks and Royal Dutch Airlines are likely to change.

The parliamentary Transport Committee has drafted a national Aviation Management Bill 2020 which seeks to guide the implementation of its initial report that suggested the State’s takeover of the national carrier.

The government, which now owes 48.9 percent of Kenya Airways, is planning to buy the other 51.1 percent shares and come up with an Aviation Holding Company to run KQ and the Kenya Airports Authority (KAA).

The Bill is currently at the State Law Office for improvements before being brought to the Parliament.

David Pkosing, the Transport Committee chairman, said his team is in a move to push the Bill forward and finalise it by August.

“My committee is focused, and on course to deliver KQ and KAA merger now that the bill to actualize the recommendations in our report is on its way to parliament after it was approved by the cabinet,” he said.

“As a committee, we want to deliver the Bill by August. We are committed to ensuring that the airline receives the necessary support and reclaim its lost glory. This is a critical Jubilee agenda to rescue our aviation in the post-Covid-a9 pandemic.”

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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