Tag: JKIA

  • Controversial Turkish Firm Celebi Canceled in India Over Security Concerns Acquires Strategic Property in Nairobi’s Main Airport

    Controversial Turkish Firm Celebi Canceled in India Over Security Concerns Acquires Strategic Property in Nairobi’s Main Airport

    Nairobi — A Turkish aviation giant that lost access to nine Indian airports following a diplomatic crisis has quietly secured a foothold at one of East Africa’s most strategic air cargo hubs, raising questions about the vetting of foreign operators at critical infrastructure sites across the continent.

    Celebi Aviation, through its German subsidiary Celebi Cargo GmbH, has acquired Transglobal Cargo Centre for 40.1 million dollars, gaining control of ground-handling operations at Jomo Kenyatta International Airport in Nairobi.

    The deal, approved by Kenyan authorities last week, marks the Istanbul-based company’s first direct entry into African aviation services just eight months after Indian officials terminated its concession agreements citing national security concerns.

    The timing and circumstances of the acquisition have drawn scrutiny from industry observers familiar with the events that led to Celebi’s abrupt exit from India.

    In May 2025, Indian authorities revoked the company’s operating licenses at major airports including Mumbai and Delhi, formally citing security clearance issues following a brief military confrontation between India and Pakistan.

    The cancellations came after Turkey expressed formal support for Pakistan, triggering what Indian officials described as necessary security reviews of Turkish commercial interests.

    Appeals by Celebi’s Indian subsidiaries were rejected by the Bureau of Civil Aviation Security, an agency under India’s Ministry of Civil Aviation.

    The company’s subsequent expansion into Kenya, barely six months later, has prompted questions about whether adequate due diligence was conducted by Kenyan regulators.

    Peter Muthoka, the Kenyan billionaire who sold Transglobal to Celebi, told local media he was exiting the business to pursue other investments.

    Peter Muthoka.
    Peter Muthoka.

    The 5.17 billion shillings transaction represents one of the largest deals in Kenya’s logistics market, with part of the proceeds earmarked for debt repayment related to facility upgrades at the airport.

    Kenya’s Competition Authority approved the acquisition unconditionally, stating the transaction was “unlikely to negatively impact competition in the market for cargo handling in Kenya, nor elicit negative public interest concerns.”

    The regulator projected that the deal would result in increased investment in facilities, equipment, and human resources.

    However, the approval notice made no mention of the security concerns that led to Celebi’s expulsion from India, nor did it reference any enhanced vetting procedures for foreign operators acquiring assets at the country’s busiest airport.

    JKIA handles approximately 20 percent of Kenya’s annual air cargo volume of 400,000 tonnes, making it a critical node in regional trade networks.

    Through its new subsidiary, operating as Africa Flight Services, Celebi now controls 33 percent of the export cargo handling market at JKIA and 20 percent of the import market, according to data from the Kenya Airports Authority.

    The company’s closest competitor, Kenya Airways Cargo, holds 22 percent of exports and 32 percent of imports.

    Dave Dorner, chief executive of Celebi Aviation, described Kenya as “a key gateway for trade and cargo flows across East and Central Africa” in a statement announcing the acquisition.

    He said the company aims to combine local expertise with global operational standards to support Kenya’s ambitions as a regional trade and logistics hub.

    The aviation sector has long been considered sensitive from a security perspective, with cargo handling operations at international airports subject to heightened scrutiny in many jurisdictions.

    Ground-handling companies have access to aircraft, cargo manifests, and restricted areas of airports, making their operations potential vulnerabilities if compromised.

    Industry sources contacted for this report expressed surprise that a company facing security-related cancellations in one major market could secure regulatory approval in another without apparent additional scrutiny.

    One aviation security consultant, speaking on condition of anonymity, described the situation as “a glaring example of regulatory arbitrage” in which companies barred from operations in jurisdictions with stringent security protocols seek entry into markets with less rigorous oversight.

    Kenyan authorities have not responded to requests for comment on whether the Indian security concerns were considered during the approval process.

    The Ministry of Transport and the Kenya Civil Aviation Authority declined to provide statements on the vetting procedures applied to the Celebi transaction.

    Celebi Aviation, founded in 1958, operates across Europe, India, and the Middle East, offering passenger services, ramp operations, and air cargo management at more than 40 airports worldwide.

    The publicly traded company, listed on Borsa Istanbul, has positioned the Kenya acquisition as part of its international growth strategy.

    The company’s statement on the transaction projected that Kenya’s aviation market would grow at an average rate of 5 percent annually over the next five years, significantly outpacing the global average.

    It said Transglobal’s annual revenue is expected to reach approximately 15.9 million euros by the end of that period, supported by total investments of around 6.5 million euros.

    For Muthoka, the sale marks his second major exit transaction.

    In 2014, he received 1.8 billion shillings for his stake in motor vehicle dealer CMC Holdings when it was acquired by Dubai’s Al Futtaim. He maintains a presence in the logistics business through Acceler Global Logistics, which offers freight services and operates from JKIA’s cargo facilities.

    The broader question raised by the transaction concerns the coordination, or lack thereof, between regulatory authorities in different jurisdictions when evaluating foreign investors in sensitive sectors.

    While commercial considerations often drive approvals of foreign investment, security agencies in countries including the United States, Britain, and members of the European Union have increasingly applied heightened scrutiny to acquisitions of critical infrastructure assets.

    Whether Kenya’s approval of the Celebi acquisition reflects a different risk assessment than that undertaken by Indian authorities, or simply a less stringent vetting process, remains unclear.

    What is certain is that a company deemed unsuitable to operate at Indian airports on security grounds now controls a significant portion of cargo operations at East Africa’s most important aviation hub.

  • SCANDAL EXPOSED: KAA Boss Dr. Gedi Under Fire Over Sh243M Tender Heist and US Visa Ban Linked to Drug Trafficking

    SCANDAL EXPOSED: KAA Boss Dr. Gedi Under Fire Over Sh243M Tender Heist and US Visa Ban Linked to Drug Trafficking

    Acting CEO accused of running corruption cartel as whistleblowers reveal massive procurement fraud and international sanctions


    Kenya’s aviation sector is reeling from explosive revelations that have placed Kenya Airports Authority acting Managing Director Dr. Mohamud M. Gedi at the center of a sprawling corruption scandal involving irregular tenders, abuse of office, and alleged links to narcotics trafficking through the country’s busiest airport.

    In what amounts to one of the most brazen cases of procurement fraud in recent memory, The Star has established that Dr. Gedi personally authorized a staggering Sh243 million payment to a politically connected law firm for legal services initially budgeted at just Sh12.5 million, representing a jaw-dropping 1,845 percent cost explosion that has left taxpayers footing a colossal bill.

    The payment to Triple OK Law Advocates LLP, a recently incorporated firm with shadowy political ties, was made through direct procurement in what insiders describe as a deliberate circumvention of competitive bidding rules meant to benefit a select few at public expense.

    Documents seen by The Star reveal that Dr. Gedi sought retrospective approval for the expenditure on September 25, 2025, after the money had already been committed, raising serious questions about whether oversight institutions at KAA exist in anything more than name.

    US SLAMS DOOR ON GEDI

    The scandal has taken a dramatic international dimension after it emerged that Dr. Gedi was denied entry into the United States under Section 221(g) of the Immigration and Nationality Act, a provision typically invoked when applicants pose national security concerns or have integrity issues.

    The visa refusal came ahead of a critical aviation security meeting with the US Transportation Security Administration scheduled for September 25, 2025, during the 41st ICAO Assembly in Montreal, a meeting Dr. Gedi was forced to miss.

    Sources close to the matter have told Kenya Insights that American authorities flagged Dr. Gedi’s application over suspected corruption in aviation procurement and possible ties to narcotics activities, concerns that gained traction after 20 kilograms of cocaine trafficked through JKIA was seized at London’s Heathrow Airport last month.

    The development sent shockwaves through the Ministry of Transport, with Aviation Principal Secretary Teresia Mbaika reportedly summoning Dr. Gedi to an emergency Sunday meeting at her office as panic gripped senior officials fearing a looming shakeup at KAA.

    CULTURE OF IMPUNITY

    The Star has obtained damning testimonies from multiple KAA employees who paint a picture of an institution held hostage by an iron-fisted leader who brooks no dissent and treats public resources as his personal war chest.

    “You cannot question him. He keeps saying he is the government and that money answers everything,” a senior staff member revealed on condition of anonymity. “He is the reason Wilson Airport is in such a sorry state. Complaints about facilities go unanswered because decisions are made by one office without consultation.”

    Insiders claim that lucrative tenders worth millions have been channeled to politically connected individuals, including a sitting governor from the North Eastern region, in deals that allegedly bypassed standard procurement procedures entirely.

    The revelations have also exposed how Dr. Gedi allegedly secured his acting CEO position through a Sh70 million arrangement rather than a transparent selection process, casting doubt on the legitimacy of his tenure from the outset.

    ADANI SAGA RETURNS TO HAUNT KAA

    The Sh243 million legal fee was ostensibly meant to defend KAA against five petitions challenging the now-cancelled Adani Group proposal to lease JKIA for 30 years in exchange for Sh246 billion in upgrades.

    The deal, which collapsed in November 2024 after US prosecutors indicted Adani Group chairman Gautam Adani for alleged bribery, has cost Kenyan taxpayers upwards of Sh500 million in legal fees, application costs, and administrative expenses for contracts that were ultimately scrapped.

    Constitutional lawyer Karanja Matindi has questioned why the Attorney General’s office, which is constitutionally mandated under Article 156 to represent government entities, was bypassed entirely in favor of a private firm with questionable credentials.

    “This is outrageous. The accountable person should be required to make good this loss of public funds,” Matindi said.

    JKIA
    JKIA

    The tender process itself was farcical. Opened on January 23, 2025, it attracted exactly one bid. When the evaluation committee recommended re-tendering due to budget constraints, officials overruled the decision, citing urgency and securing a token 10 percent price reduction that still left taxpayers liable for hundreds of millions.

    EMERGENCY PROCUREMENT AT MOMBASA

    Investigations have also revealed similar irregularities at Moi International Airport in Mombasa, where tenders were processed under what insiders describe as emergency procurement, even when the situations did not appear to constitute genuine emergencies.

    Critics have pointed out that the pattern of abuse suggests a coordinated scheme to bypass accountability mechanisms across KAA’s operations, with Dr. Gedi at the epicenter.

    Whistleblower Nelson Amenya, whose revelations first torpedoed the Adani deal, has called for citizens to mount a counter petition to compel personal accountability from KAA officials under constitutional provisions allowing Parliament to require accounting officers to personally compensate for financial losses.

    CALLS FOR IMMEDIATE ACTION

    Civil society groups and transparency watchdogs are now demanding urgent intervention from the Ethics and Anti-Corruption Commission, which has remained conspicuously silent despite mounting evidence of procurement fraud.

    “Our Constitution is supreme. Integrity is the cornerstone of leadership. Chapter Six is clear and we will ensure those abusing public office are removed,” said a senior civil society member.

    Parliamentary oversight committees have been urged to summon KAA officials for testimony as pressure mounts for Dr. Gedi and other implicated officers to step aside pending investigations.

    For ordinary Kenyans grappling with the high cost of living, the Sh243 million legal fee represents far more than wasted money. It symbolizes a governance system where accountability remains elusive and public resources are treated as personal piggy banks by those entrusted to safeguard them.

    The question now is whether this scandal will finally produce consequences or merely add another chapter to Kenya’s long history of procurement controversies that generate outrage but deliver little reform.

    With Kenya’s airports serving as crucial gateways for tourism and trade, the integrity of those managing them has never been more critical. As international partners watch closely and domestic pressure builds, Dr. Gedi’s days at the helm of KAA may be numbered.

  • Adani’s Controversial Bid to Control JKIA Fees Sparks Public Outcry

    Adani’s Controversial Bid to Control JKIA Fees Sparks Public Outcry

    India’s Adani Airport Holdings has proposed taking control of passenger fees at Jomo Kenyatta International Airport (JKIA).

    This plan includes a hike in airport fees, as outlined in their proposal to the Kenya Airports Authority (KAA) for upgrading and operating the aviation hub.

    Adani’s Private Investment Proposal and Public Concerns Over JKIA

    Adani’s proposal to KAA suggests that current passenger fees are too low compared to other regional hubs like Addis Ababa.

    They argue that doubling the fees could secure JKIA’s financial future. The proposal, which became public last week, has raised significant concerns.

    Critics argue that the government’s plan to involve a private player in running JKIA did not follow proper procedures.

    Planned Investments and Financial Justifications

    Adani plans to invest Sh97.5 billion ($750 million) in the first phase, which includes a new terminal building, apron, and taxiway system.

    Completion is expected by 2029. Later phases will feature an airport city with hotels and shopping malls.

    Adani claims that controlling passenger and business fees at JKIA will ensure an 18% return on investment.

    They argue that doubling user fees would only modestly increase ticket costs by up to 2%.

    Comparisons with Regional Airports

    Adani pointed out that JKIA charges lower fees compared to other regional airports like Addis Ababa Bole International Airport, which still leads in Africa despite higher fees.

    Adani’s Proposed Concession Fee and JKIA Financial Challenges

    Adani proposed paying KAA a fixed concession fee, starting at $47 million (Sh6 billion) and increasing by 10% every five years to account for inflation.

    JKIA is crucial for KAA, generating over 80% of its revenue. Despite making Sh17 billion in revenue last year, KAA reported a post-tax loss of Sh4.2 billion due to high administrative costs.

    Underinvestment Issues and Government’s PPP Strategy

    JKIA has faced underinvestment, handling around 10 million passengers last year despite a design capacity of 7.5 million. Terminal two, initially a temporary facility after the 2013 fire, still needs a permanent replacement.

    The government acknowledges a need for Sh260 billion to upgrade local public aviation infrastructure, with JKIA requiring Sh130 billion.

    Unable to raise this internally, the government plans to invite private firms to invest through public-private partnerships (PPPs).

    Adani’s Argument Against Competitive Bidding

    Adani aims to fill this funding gap and suggests that competitive bidding processes could delay airport development.

    They envision completing the first phase of their project by 2029, aligning with the government’s Vision 2030 goals.

    Track Record and Criticism

    Adani operates eight airports in India and handles a significant portion of the country’s air traffic. However, they have been criticized for increasing user fees.

    They propose to operate JKIA for 30 years, investing Sh246 billion ($1.85 billion) in three phases.

    Adani’s proposal to control JKIA fees has sparked significant public debate. While it promises major investments and improvements, concerns about increased fees and proper procedural adherence remain.

  • KRA set to auction personal effects at JKIA

    KRA set to auction personal effects at JKIA

    The Kenya Revenue Authority (KRA) has stepped up its efforts to wrestle tax evasion by confiscating undeclared personal effects from Kenyans returning into the country through the Jomo Kenyatta International Airport (JKIA).

    Such personal effects include wigs, human hair extension, footwear, handbags, paintings and earrings which the taxman is set to auction at the JKIA’s warehouse next month if the owners fail to clear the tax due on them.

    “Passengers should familiarize themselves to the allowable concession of $500 (Sh54,900), the specific exemptions, types of goods prohibited and those that are restricted,” KRA Commissioner for Customs and Border Control Lilian Nyawanda said.

    KRA had in 2016 set maximum duty collected on such items at Sh50,000 to fasten the clearance of passengers at international airports as it subjected the listed them to customs taxes upon arrival and departure at the terminals.

    The regulations dictate that all the taxable items attract taxes at the rate determined by the value of the money paid at a foreign country but does not rely on factors as weight, size or quality. They were introduced following complaints raised by passengers returning from Dubai and China who claimed they were being extorted through hiked rates compared to those re-entering the country from Europe or America.

    Passengers travelling out of the country are now required to fill in a Temporary Importation Form-P45 to declare items being shipped abroad for repair including the accompanying tools and show the receipt during return as a declaration. Items bought bought in Kenya and being carried for commercial purposes must also be declared during departure for purposes of taxes on return.

    And gadgets like video recorders, phones and projectors bought while on a trip to Kenya and currency exceeding Sh1 million ($10,000) must also be declared at the customs before departure while those arriving in the country must fill a passenger declaration form stating the amount paid for each item and the taxes.

    Items meant for sale or business use, including those being brought back to Kenya after commercial use must also be declared as travelers remain under strict instructions to declare newly acquired items whether they were bought, inherited or gifted and all items bought exceeding the limits of duty-free shops.

    Even donations are not exempt from taxes except in situations where a Pro 1B document which accompanies diplomatic goods or special letter from the Treasury is produced otherwise flouting of these regulations will lead to the outright seizure of the listed items by KRA.

    But Kenyans who have been living in foreign countries are allowed by law to import personal items and household goods duty-free on returning home so long as they can provide proof of living abroad for at least two years.

    The law also provides that those bringing in used personal effects or household items must have owned and used them for a period not exceeding one year to qualify for tax exemption.

  • Reprieve For 748 Air Services As Court Grants Staying Orders

    Reprieve For 748 Air Services As Court Grants Staying Orders

    Renowned aviation company, 748 Air Services has been granted staying orders by a Nairobi court, preventing Kenya Airways and its agents from further executing eviction orders.

    The airline on Monday filed a legal suit against Kenya Airways for malicious damage of its property worth millions of shillings and harassment of employees.

    “In the interim, a temporary injunction be and is hereby issued restraining the plaintiff by itself or servants and/or agents from interfering with the defendant/Applicants quiet enjoyment use and occupation of the suit property pending interpartes hearing of this application,” said Milimani Commercial Courts, Principal Magistrate, Ms. A.N. Makau.

    The court has also directed Commandant, Jomo Kenyatta International Airport to ensure compliance of the orders.

    Airline’s offices.

    On Friday, July 23rd 2021, Around 15 armed police and more than 50 men raided 748 plaza along Airport North Road in Embakasi broke the premises entrance glassdoor, broke other doors, removed and extremely damaged office furniture and fittings.

    In an affidavit dated July 26th, 2021, 748 Air Services Managing Director, Moses Mwangi said the Friday afternoon raid has disrupted normal operations at the Embakasi office and left the airline with significant losses.

    “The actions of the plaintiff have caused and continue to cause great losses to our company, being an airline that has recently launched domestic flights to Kisumu,Mombasa and Diani,” said Mr. Mwangi.

    The airlines personnel of over two hundred (200) employees are still unable to access the same premises and are not able to trace important documents, records and machinery after the incident.

    We have always enjoyed peaceful and quiet occupation of the premises since the inception of our lease agreement on 1st February, 2021 until the plaintiff and its agents raided our offices on 23rd July 2021,” said Mwangi.

    748 Air Services has been paying rent for the 748 Plaza premised on the parcel of land no. LR. No.9042/583 toAfrican Airlines International limited (formerly African Express Airways International Limited).

    The airline was in the process of completing renovations on suit premise before the raid, with renovation costs amounting to the tune of Ksh. 90 Million.

    By the time the raid begun, 748 Air Services had not been served an order to vacate the premises and had only learnt of an order served on the premises landlord, Captain Musa Hassan Bulhan, Managing Director, Africa Express Airways (k) Limited and African International Airlines Limited at 4.00 p.m before Kenya Airways agents removed his office items.

    In a certificate of urgency filed by the company on Monday through its lawyers, 748 Air Services is seeking to be heard on priority basis, because the orders issued on 16th of July 2021 continue to have far reaching adverse impacts.

    748 Air Services, has however issued a surety to its clients that all flights including recently launched domestic flights to Kisumu, Mombasa and Diani and cargo services will continue undisrupted.

    “We encourage our customers to continue booking their flights through our new Office in the city center (Laico) and other digital avenues,” said Mr. Mwangi.

  • KAA To Use Sh350 Million On Potholes Repair At Wilson Airport

    KAA To Use Sh350 Million On Potholes Repair At Wilson Airport

    Kenya Airports Authority has said that the repair of the potholes at the busiest airport in East and Central Africa—Wilson— will chop Sh350 million off coffers funds.

    “The immediate requirement for major rehabilitation at Wilson Airport is Sh350 million. This is what we require for now,” said Kenya Civil Aviation Authority director-general Gilbert Kibe.

    According to Kibe, major works on the project will start once local firms with planes exceeding seven tonnes operating at Wilson airport relocate to JKIA.

    The affected planes entail Dash8-300, Dash 8- 200, Dash 8-100, Fokker 50 and Bombardiers that account for a substantial part of the fleet used by locally.

    Local Air Operators, who has said that potholes were the reason behind recent faults and accidents, have faulted the KCAA’s move stating that JKIA is equally congested and has no space to build hangars nor carry out repairs.

    The move does not make sense since JKIA is equally congested. Remember that it’s practically impossible at the moment to get space to build a hangar at JKIA. We foresee a situation where some airlines will fall out of business,” said an air operator in an earlier interview with the BD.

    Kibe did not give a specific timeline within which he expects work on the project to be finished while responding to the operator’s concerns.

    “It will be such that you operate from JKIA, but if the aircraft needs to be maintained you fly back to Wilson, go into the hangar and fix it then you come out of the hanger and fly out. It has a cost, yes but that’s the price of progress,” said Kenya Civil Aviation Authority (KCAA) director-general Gilbert Kibe in an interview with the Business Daily.

    The laxity in enforcing safety at Willson Airport has been exposed by recent weekly airline mishaps and reported accidents—even though less fatal, but a real disaster in waiting.

    A few weeks ago, a SafariLink plane carrying 10 passengers veered off the runway after a tyre burst. This is the latest incident that led to the closure of the airport for almost an hour.

    In October, a Silverstone Air Fokker 50 jet skidded off the Wilson runway while taking off on a flight to Lamu. This happened a few days before another Silverstone Aeroplane lost a tyre after taking off from Lodwar Airstrip in Turkana County which poked holed in the potholes excuses extending the problem beyond Wilson.

    According to data, passenger traffic at Wilson Airport rose by 27.8 percent. In 2016, the airport received 413,146 passengers while in 2017 they recorded 528,000 passengers. Traffic to the airport increased to 53 percent making it Kenya’s second busiest airport.

     

  • Loss Making KQ Flops Salary Talks With KALPA

    Loss Making KQ Flops Salary Talks With KALPA

    Once The Pride Of Africa and now more like the circus of Africa Kenya Airways, KQ, management has flopped salary and pilots deficiency with Kenya Airline Pilots Association (Kalpa) again.

    KQ’s outgoing Chief Executive Sebastian Mikosz

    KALPA halted CBA talks with the Kenya Airways management after contrasting on how the airline should handle its pilot shortage.

    General-Secretary Murithi Nyagah in a letter to KQ’s outgoing Chief Executive Sebastian Mikosz, says the meetings had been thwarted until they commit to fair and honest dialogues.

    “The Association hereby suspends participation in CBA negotiations due to gross violations of the CBA and the lack of goodwill thereof from management,” said Captain Nyagah.

    On top of the suspension of CBA talks, Nyaga notified KALPA members that the union had filed a dispute in court after the talks slumped.

    “CBA negotiations will remain suspended until such a time we feel we are engaging in a fair and honest industrial climate. To this end the executive council is left with no choice but to declare a trade dispute at the Ministry of Labour,” said the letter dated October 14.

    KQ has been making consecutive losses for over a decade with recorded revealing that the airline records Sh5.18 billion loss annually. The key reason being flight cancellation as a result of the shortage of pilots.

    Currently, KQ has 435 pilots against the required 497 pilots. Paul Njoroge, the KQ’s director of Operations confirmed that the airline has a deficit of 62 Pilots.

    According to previous talks, KQ suggested hiring 20 Pilots for Boeing 737 planes a move the Pilots union strongly opposes. On their defence, KALPA  stated that 44 of the 435 pilots are also undergoing training due to the current promotion policy.

  • KQ Withdraws From JKIA Takeover Bid

    KQ Withdraws From JKIA Takeover Bid

    On Monday this week, Directorate of Criminal Investigations sent a  formal request for pieces of information and documentation that will aide in the Probe into previous mismanagement of formerly Pride of Africa- Kenya Airways.

    According to Kenya Airways, popularly known as KQ, the DCI’s probe will focus on the procurement of services for the maintenance repair and overhaul of aircraft engines at the national carrier.

    KQ which hires third party firms to carry out maintenance said they welcome the investigations and are engaging with the DCI team to provide necessary support and information.

    “This is part of our overall strategy to ensure transparency and integrity in all our procurement processes and operations,” Kenya Airways corporate communications said in a notice.

    DCI has not made the details of investigations open for perusal which makes it almost impossible currently to know which firms and individuals are being targeted under the commenced probe.

    However last week, reports emerged that former KQ chief executive Titus Naikuni was also under probe over Sh100 billion lost between 2003 and 2014. Detectives are also said to be probing the financial period between 2017/8 and 2018/9 inquiring about members of the procurement and tender committee for the same period.

    DCI communicated to the media through a letter stating that the probe will review everything from procurement and budget plans, tender advertisement/request for proposal, list of prequalified suppliers and tender documents for potential bidders.

    Sebastian Mikosz KQ CEO and managing director stated that the loss-making airline was no longer interested in pushing to run Jomo Kenyatta International Airport. The airline has since withdrawn the initially proposed Privately Initiated Investment Proposal (PIIP).

    The proposal fell through when it reached Parliament that instead recommended the establishment of an Aviation Holding Company to consolidate the country’s aviation assets, including the nationalization of KQ.

    “KQ’s board and management believe that the PIIP has catalyzed important discourse about the future of Kenya’s civil aviation, which is now being led by the Government of Kenya. Kenya Airways looks forward to continued collaboration with all involved stakeholders of the process,” said Mikosz.

  • Kenya Airways No Longer Profitable

    Kenya Airways No Longer Profitable

    The former Pride of Africa, Kenya Airways, announced its annual financial performance this week.

    KQs Chairman, Michael Joseph said that 2018 was a very challenging year for the loss making airline.

    Kenya airways posted a pretax loss of 7.59 billion Kenyan shillings an equivalent of $74.93 million.

    In the last annual financial report, 2017, they posted the loss of Ksh 9.44 billion.

    The battling to remain relevant and regain profits Airline’s chief executive Sebastian blames the loss to high fuel costs.

    Sebastian has also said that KQ has super expensive personnel and their aircraft dealers are expensive.

    The CEO and the Chief Executive said they’re looking at other avenues to minimise the loses.

    “We started mitigating this risk by implementing a new hedging policy with minimal risk. Kenya Airways offers other services, technical and ground handling to domestic, regional and international customers” Sebastian emphasized.

    “We have however seen growth in passenger numbers. Management team have done a great job under the circumstances and thanks to the board for massive support. KQ is not just an airline but a strategic asset for the country. We should be proud of what KQ has done for Kenya & support, we can help improve the country’s GDP and create employment opportunities despite our challenges. We need support from media, investors and government,” KQ’s Chairman Michael Joseph.

    The recurring losses have raised questions about the current leadership of the airline. With some saying that the financial loses are tricks to help the airline chiefs to bargain for their full running of the JKIA operations.

    Kenya airways seems to have never bought affordable fuel. They complain every time of cost of fuel. Where do they get it?

    However, the New Symbolic route is still below the much expectations.

    Kenya airways has been forced to reduce was the number of its flights to New York from once per day to only five trips per week.

    Reports indicate that the route has only had 15,000 customers in a Year.

    “I do not consider it to be a lucrative route. There is nothing lucrative about flying to New York,” KQs CEO, Sebastian Mikosz says.

    Seems the new added routes have no much impact to KQs financial boost programs. They are adding more expenses to an already loss making company.

    Last year, KQ had added Mauritius, Libreville and Mogadishu to its destinations.

    They further included Rome and Geneva to its routes after signing the New York deal.

    Despite all this, the carrier expects to add two Boeing 787 Dreamliner planes back to its fleet later this year. The planes had been leased to Oman Air.