Parliament Approves Kenya Airways Nationalisation Plan

Parliament has voted to re-nationalise Kenya Airways. The government holds a 48.9 per cent stake in the airline as it stands and will take at least 21 months to buy out the rest of the shareholders. 

According to the chair of the parliamentary committee on transport David Pkosing minority shareholder will be bought out, while local lenders who own around 38 per cent of the company may be paid using government debt such as Treasury bonds. Air France has not indicated whether it intends to maintain its 7.8 per cent stake. 

Kenya Airways has struggled with debt and losses since 2014. A 2017 effort to restructure the airlines debt has ultimately proved unsuccessful.

Government now plans to run Kenya Airways under an aviation holding company alongside Jomo Kenyatta International Airport (JKIA) and the Kenya Airports Authority.  

Once nationalised Kenya Airways will benefit from various tax exemptions, reducing financial pressures on the company and enabling it to better compete with other careers in the region.