President William Ruto during his trip to America last Thursday launched the government’s bid to sell its entire 48.9 per cent stake in the ailing national flag carrier Kenya Airways as he met top executives of Delta Air Lines.
He however declined to provide details of the talks as the country seeks a cash-flush foreign airline as a strategic investor in the national carrier to offer expertise and cut its reliance on Treasury handouts for operational cash.
“I’m willing to sell the whole of Kenya Airways Plc. I’m not in the business of running an airline that just has a Kenyan flag, that’s not my business,” Ruto told Bloomberg News on the sidelines of the US-Africa Leaders’ Summit in Washington DC on Friday.
Adding that discussions with Delta are at a preliminary stage, Ruto noted that the government is looking for partnerships that will make KQ a profitable entity.
Delta has previously shown interest for a piece of the country’s air traffic.
Ahead of his visit to the US, Transport Cabinet Secretary Kipchumba Murkomen said the President’s prioritises finding a strategic partner who will restore the ailing airline back to profit-making business.
The national carrier has been making losses and has been operating as a result of governmental bailouts after years of losses.
In August 2022, the airline recorded a Sh9.9 billion losses in the first half of 2022, an improvement from the Sh11.5 billion it registered in a similar period in 2021.
The loss was attributed to high fuel costs, which saw it spend Sh11 billion during the first six months of the year.
KQ’s “Pride of Africa” slogan rings hollow.
Last month, KQ staff had issued a strike notice complaining of pilot victimisation, non-adherence to the Kenya civil aviation regulations, leadership and governance shortcomings and the withdrawal of the staff provident fund.
Kenya Airways was established in 1977 and now carries more than four million passengers to 42 destinations each year.
