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Gov’t Contemplates Taking Full Ownership of KQ- PS Koimett

Transport Principal Secretary Esther Koimett has said that the Kenyan Government is considering taking full ownership of Kenya Airways, a move that will avert competition from other renowned state-owned airlines in Africa.

Currently, the government owns largest stake- 48.9 % after it gained an additional 19.1 percent shares through conversion of debt ( loans of Sh44.2 billion ) into equity in 2017. It is followed by KLM which owns 7.8 percent stake in the company.

“But that does not mean that it needs to remain this way,we can create a path that leads it to a 100 percent ownership by the government,” Koimett was quoted by Bloomberg.

Members of Parliament have also thwarted KQs plan to take over operations at Jomo Kenyatta International Airport demanding to know:

* Why they awarded the transactions advisor(s) a contract worth KSh150 million through restricted tendering;

The airline’s share price has fallen by more than 20 per cent over the last few weeks following parliament’s move to suspend the proposal.

Kenya Airways share price down by more than 11% in the last one week after parliament ordered the suspension of all dealings on the proposed take over of Jomo Kenyatta International Airport (JKIA). pic.twitter.com/pWVhTz6ohV— Kenyanwallstreet (@kenyanwalstreet) February 25, 2019

RELATED; Big Blow to Kenya Airways as Move to Take Over KAA Operations Halted by Legislators

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