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NATIONAL NEWS

MPs demand inquiry into KQ’s ‘bottomless pit’ citing cartel grip

MPs demand a comprehensive probe into Kenya Airways’ financial losses, alleged cartel-controlled leasing, and poor customer service, urging reforms and private-sector management to restore efficiency.

NAIROBI, Kenya, Nov 13 — Members of Parliament are calling for a comprehensive inquiry into Kenya Airways (KQ), citing the national carrier’s continued financial losses, poor customer service, and alleged cartel-controlled aircraft leasing arrangements.

The debate was sparked by a request from Luanda MP Dick Maungu for a statement on KQ’s financial performance and management practices.

Eldas MP Adan Keynan criticized the airline for draining public funds despite years of government bailouts.

“Mr. Speaker, the government has offered KQ technical, financial, and administrative support over the years. The only thing we get in return is wastage, poor PR, and losses,” he said.

Keynan alleged that the airline’s planes are owned by cartels who lease them to KQ at exorbitant rates, calling the arrangement a financial black hole.

He urged the formation of a select ad-hoc committee to scrutinize KQ’s operations.

Minority Leader and Kathiani MP Robert Mbui highlighted poor customer relations, citing incidents where a legislator with a disability was left stranded at the airport and Speaker Moses Wetang’ula was denied boarding on a domestic flight despite holding a platinum card.

Marakwet East MP Julius Kipleting suggested reducing the government’s 48 percent stake in KQ to a normal investment level, allowing the private sector to manage the airline professionally.

“We need to allow private investors with business minds to run this airline effectively, create jobs, and connect Kenya to the world,” he said.

‘Bottomless pit’

Kamukunji MP Yusuf Hassan described Kenya Airways as a ‘bottomless pit’ caused by chronic mismanagement.

“Three times in the last few months, KQ cancelled flights from Amsterdam and London after check-in. If you run an airline like that, it is bound to fail,” he said.

Buuri MP Mugambi Rindikiri pointed to poor management, lack of expenditure control, and insufficient cargo planes to support Kenya’s export sector, particularly the flower industry.

North Imenti MP Abdul Dawood, a member of the Transport Committee, acknowledged MPs’ frustrations and said Kenya Airways had been invited to appear before the committee next week.

He noted challenges including fuel hedging losses and foreign exchange exposure but promised a more detailed response after the meeting.

Kenya Airways has posted repeated losses for over a decade despite multiple government bailouts.

Its 2023 debt restructuring converted billions owed to banks into shareholder loans, yet the airline remains burdened by high leasing costs and operational inefficiencies.

The government owns about 48.9 per cent of the airline, Dutch carrier KLM holds 7.8 per cent, with private investors and banks holding the rest of the stake.

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