Kenyan MPs Have Voted To Allow The Government To Take Over Kenya Airways

Members of Parliament (MPs) on Tuesday adopted the Kenya Airways Report paving way for the government to take over 100 percent of the airline.

The move, according to those who voted is aimed at resurrecting the almost-dead airline by shielding it from more losses.

The passing of the report now means that the government of Kenya will take over all the operations of Kenya Airways.

The government, through the National Treasury, will now have to buy all the shares from all the current shareholders.

Upon being nationalized, Kenya Airways will cease from trading at the Nairobi Securities Exchange.

The government of Kenya owns 48.9 percent of Kenya Airways with 7.8 percent of the once “Pride of Africa” being owned by Air France-KLM.

Other shares in Kenya Airways are owned by individuals, commercial banks that exchanged their loans into shares and other companies.

Kenya Airways plunged into financial turmoil when it made a loss of more than 27 billion shillings and which it has been struggling to reduce.

The airline is currently operating in the negative, meaning if creditors came for what it owes, all its assets could not foot the bill.

If nationalized, Kenya Airways will officially become the responsibility of the taxpayer. This means the taxpayer will have to pay its debts, endure the losses whether they like it or not.

Some people are, however, reading mischief in the nationalization of Kenya Airways. According to a section of Kenyans, it a way out of major shareholders who see no future of investing in Kenya Airways.

Kenya Airways had initially applied to take over the running of the Jomo Kenyatta International Airport sparking opposition among leaders and Kenyans.

Kenya Airways later dropped its push to run and manage the Jomo Kenyatta International Airport saying the application had been “overtaken by politics.”

But Kenyans should not celebrate. Handing 100 percent of Kenya Airways to the government might just be the last nail into the coffin.

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