Deputy President William Ruto faults MPs for making the situation regarding the Kenya Airports Authority/Kenya Airways takeover deal “toxic”.
The DP said if the government allows Kenya Airways to go down, it will go down with Tourism, horticulture and Kenya Airports authority.
“We will make sure Kenya Airways survives and continues to help us with our tourism, Hortuculturee and ensure this national asset is made viable.”said DP.
Parliament has also warned that the planned takeover of Jomo Kenyatta International Airport (JKIA) by Kenya Airways (KQ) will deprive the Kenya Airports Authority (KAA) of significant resources as the concession fee will not cover the operational costs of the country’s remaining airports.
In a progress report on the inquiry into the proposal, the National Assembly’s Public Investments Committee (PIC) pointed out that if the deal goes through, KAA will not have enough money to run airstrips and its head office.
“In Kenya Airways financial model as per the PIIP, the annual concession fee has been set at Sh2.9 billion in 2019, rising gradually to Sh3.6 billion and peaking at sh6.1 billion in 2033.
“In comparison, KAA’s non-JKIA operations in the 2019 financial year amounts to Sh6.6 billion, leaving a shortfall of Sh3.7 billion from the concession fee,” says the report.
“Kenya Airways’ proposal further assumes that KAA will retain all contingent liabilities, including those arising from JKIA operations, a situation that would leave KAA worse off financially,” it adds.