The JKIA takeover has raised confusion it from the look of things MPs are fighting a war they are not even aware what they are handling. But the big question remains; Is the takeover a merger or a partnership?
MPs yesterday disagreed on whether to stop Kenya Airways’ plan to take over management of Jomo Kenyatta International Airport.
Members of the Public Investments Committee and the Transport committee clashed over the planned takeover.
Kenya Airlines CEO Sebastian Mikosz defended the airline’s plan, saying the aim is to improve JKIA and increase Kenya’s market share in the East Africa.
“An analysis of the market showed we have little under our control. It is obvious to us as an airline that we need to increase our market share by putting our assets together,” he said.
Mikosz said the main objective of the bid to run JKIA is to position Kenya ahead of its competitors — whom he said are more organised.
“We decided to copy the effective competitors as is the case of Ethiopia, the Gulf carriers — Fly Emirates, and Rwanda,” the KQ boss said.
He explained that according to the plan, KQ will not be buying or merging with JKIA but will run it under Public Private Partnership deal. “It is to have a concession operator agreement, which means that the building and all the land will remain owned by KAA and ultimately owned by the government,” he KQ boss said.
He added, “The merger or acquisition is not applicable, it is a system where we want to create a holding where all the assets can finance each other and are aligned for growth.”
During the session, PIC ordered a stop into further negotiations between the airline and Kenya Airports Authority. The Transport committee declined to call a halt.
Transport committee chairman David Pkosing declined a request by Mathira MP Rigathi Gachagua that the negotiations be stopped until the committee completes probe.
Other members, Jaldesa Rehema of Isiolo and John Naicca of Mumias West, also wanted the takeover negotiations stopped as “Kenya Airways can’t be compared with African airlines.”
In his decision, the Pokot South MP instead asked the concerned agencies to give the committee two weeks to study the KQ proposal, said to be confidential.
PIC was to engage Transport PS Paul Maringa but he did not turn up. The committee chaired by Mvita MP Abdulswamad Nassir will table the matter before the House today to find a way forward.
The probe followed a proposal by KQ to take over JKIA for 30 years by creating a special purpose vehicle to run the airport in a public-private partnership agreement.