The National Assembly’s Transport committee has recommended nationalisation of Kenya Airways as a bold step to overturn the fortunes of the struggling national carrier.
If the report gets the nod of MPs then government will move in and clear huge debts owed by the carrier and take it off private hands making it one of the state corporations.
we don’t need more parastatals in .ke, we should be privatizing the few that are up and running.
The banks want their money out instead of equity. It is just a clever way of making Wanjiku pay KQs debts. If they succeed, anyone that bought kq shares may get a big payoff. An event-driven fund manager would make boatloads of $$$ here.
It’ll all end in disaster:D
:D:D:D
Another payday for the hardest working group of kenyans.
The state earns plenty of dividends from a lot of public enterprises like KCB, Kengen, ICDC(which was the original owner of Centum), Kenya Power and Kenya Ports Authority.
Shares ,shares
No country ever died because it had no national airline. Let the airline collapse and die a natural death instead of using tax-payers money to cover a clique’s fault
Gathecha wants his money back ,hata Kama peasant watauza damu Yao
It will continue making loses and the government will keep on bailing it out. If its nationalised the tax payer will be the loser.
The amounts spent on kenya airways in 20 years is more than we have spent on KNH, which is more important to us
very very very true! what a shame that taxpayers always bear the brunt of bad decisions.
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KQ paid 7.5 billion Tax to government this financial year. Its been paying more than 5 billion tax for the last 20 years of operations whether it makes a profit or not. It has only made a loss in the last 3 consecutive financial years. Treasury has also been getting its share of profits for all those years it made profits. All the 4 million passengers that KQ fly to JKIA pay various taxes to various institutions including Treasury, KAA etc. KQ is an ecosystem of income to many. So when you see Treasury guarantee 75 billion rescue financial deal for KQ, its proper as it will continue to provide income for Treasury and a range of various institutions in our economy.
Why is the government buying full control of KQ. Well KQ Chairman Michael Joseph and the outgoing Polish CEO want a free hand from KLM/Air France and conspiracy theories involved on the current situation where banks hold 35% shares of KQ. Once banks(35%) and KLM/Air France (7%) and NSE shareholders (4%) are bought out then Treasury have a free hand to complete it restructuring. They can then build the airline partnerships afresh and possibly get new global strategic investors into the venture that can fund its double the fleet expansion under Project Simba. If Treasury adapts Parliament transportation committee resolution that KQ should be exempted from corporate tax during restructuring then KQ would have made a Kshs 580 million profit this year.
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This journalist must be a talker who plagiarized my comment and added content. Anyway, he just reiterated my point.
Link: KQ owners face Treasury buyout as MPs propose State takeover - Business Daily
The days of [SIZE=5][FONT=courier new]“National Carriers”[/FONT][/SIZE] are gone. That was a marketing ploy by kina Boeing, Douglass, Airbus et al.
Sell whatever is left of K.Q and let the Arabs run the skies. We cannot compete with arab money.