NAIROBI, Kenya, Aug 1 – Kenyans took to social media to rant about the Sh25.7 billion loss made by national carrier Kenya Airways in its 2015 full year report.
With the hashtag #KQRebounds, Kenyans wanted to know how the airline made huge losses even as the government continued to pump in more money.
The public had mixed reactions on whether the loss making airline should continue to get more funding from the government.
KQ posted net loss of Sh25.7billion in its 2015 full year results from a net loss of Sh3.3billion in 2014, representing a 661 percent drop.
Brian Kokonya@BKokonya What does #KQRebound mean? You never bounce back from this kind of loss with a simple hashtag
Rube Mwanaa Reginah™ @MwanaaRegina Kenya Airways 25b loss!!! Thika superhighway cost 25b !! It’s like waking up to find thika road gone!! #KQRebound #KQMess
Wairimu Njuguna ?@mwairi I once paid 17k one way to NRB from MSA only to find 20 pax on board a 150pax plane. The managers never draw a demand curve #KQRebound.
“Businesses are built on providing solutions. Am just seeing people hating instead of offering solutions to bring back our airline. #kqrebound,”Sylvia Kaimori said on her Facebook page.
Nduati MK @iNduati @PresidentKE I hereby submit, that as a taxpayer, not a coin should be used to bail out @KenyaAirways til heads roll in regard to #KQRebound.
SokoAnalyst @SokoAnalyst Managing a brand of any size is no joke in a Kenyan environment. @KenyaAirways is our pride, it must #KQRebound #KQFinancials.
Ole Teya @Kevin_teya Hahahahaha RT @masaku_: Mungu kweli halali, mama mboga is making more profits than an airline #KQRebound.
El_Gran_Jefe @mwamzmCFC @UKenyatta let no coin from our tax money b use to save KQ.U rather pay teachers!This bailout thing is too much,heads should roll #KQRebound.
The airline received Sh4.2 billion from the government as a bailout plan that will see it get back to profitability.
The national carrier is also seeking $200 million (Sh20 billion) capital from Afrexim Bank that will help refinance the business.
Many are still not content with the reasons the airline gave for making such a huge loss, ever to be witnessed by a listed firm in Kenyan history.
KQ attributed the loss to volatility of exchange rates, intense competition especially from Middle East carriers as well as terrorism that led to travel advisories, fluctuation of oil prices and the international regulatory environment.
READ: KQ flies into more turbulence with Sh25.7 billion loss.
The airline’s stocks at the Nairobi Securities Exchange (NSE) dropped by 9.5 percent to Sh5 on Friday’s trading session.
According to Standard Investment research Bank, the airline was among the top losers as investors showed disappointment in the 2015 full year loss declared on Thursday.
READ: Immediate solution needed to save KQ
The Orange Democratic Movement (ODM) wants the government to institute an independent audit into the operations and aircraft leasing of Kenya Airways following the airline’s latest loss.
Party chairman John Mbadi said the government should send its oversight committees to Kenya Airways to conduct independent forensic investigation into the loss.
“The government, as the single largest shareholder, must immediately institute a thorough forensic audit of the airline using a reputable international audit firm.”
“The National Treasury must equally account to Kenyans. We need a thorough look into the strategy and planning the airline had put in place and why that department was disbanded by either CEO or both the CEO and the Board of Directors. We need to understand why and how an airline like KQ could operate without a vital department,” the ODM Chairman said after a National Executive Council meeting which was chaired by Party Leader Raila Odinga.
