National carrier Kenya Airways will be exempted from paying taxes if Members of Parliament adopt a report by the Transport and Housing Committee.
According to reports by Nation Newspaper, this is part of nine other recommendations presented by the MPs that would salvage the loss-making national carrier.
The committee also backed the Public Investments Committee in rejecting the bid by KQ to take over operations at the Jomo Kenyatta International Airport.
Part of the proposal included the nationalizing of KQ which will see the government pay all the debts it owes to CBA group, NIC Bank, Equity Bank, National Bank, Co-operative Bank, DTB Bank, and KCB Group.
The committee further recommended the formation of a parastatal which will be tasked to manage the airport, under which KQ, KAA, and JKIA will fall.
For the year ended December 2018, the national carrier reported a loss of Sh 7.59 Billion, it attributed the loss to the high cost of fuel, high salaries and fleet ownership cost which account for nearly two-thirds of its operating costs.
