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Senate calls for probe of KQ financial woes
What you need to know:
- The Senate proposed a 10-member committee to investigate the reasons behind the airline’s poor show and recommend action.
- “Delays and cancellation of flights have resulted to grave losses. Something must be wrong with KQ and it is only scientifically wise to look into them,” said Prof Nyong’o.
- “At what point did KQ become a basket case? It is having serious cash flow problems. Are we going to invest in great airports to be utilised by other airlines?” asked Mr Kagwe.
Kenya Airways is facing serious cash flow challenges that must be urgently tackled to save it from collapse, senators said Thursday.
The call comes as National Treasury allocated Sh4.2 billion to help revive the airline.
The Senate proposed a 10-member committee to investigate the reasons behind the airline’s poor show and recommend action.
The senators noted that the carrier is grappling with Sh18 billion debt, besides management woes that have adversely hit the business.
In a motion moved by Prof Anyang’ Nyong’o (Kisumu, ODM), senators said the government, as the largest single shareholder at 29.8 per cent, should intervene.
“Delays and cancellation of flights have resulted to grave losses. Something must be wrong with KQ and it is only scientifically wise to look into them,” said Prof Nyong’o.
He said part of its problems could be linked to unfair treatment of staff, which has demoralised them.
Mr Mutahi Kagwe (Nyeri, Narc) termed it unfortunate that other airlines that came into the picture long after KQ had started business, were doing better and slowly taking away passengers that previously preferred Kenya Airways.
“At what point did KQ become a basket case? It is having serious cash flow problems. Are we going to invest in great airports to be utilised by other airlines?” asked Mr Kagwe.
He called for the committee to investigate whether the declining performance has anything to do with recruitment of unqualified staff.
He said reduced number of tourists due to insecurity and the Ebola outbreak cannot be blamed for what is ailing the airline.
PALE SHADOW
“We have to appreciate when an organisation is faced with environmental threats that can lead to its demise and work towards solutions,” he said.
Senate Minority Leader Moses Wetang’ula (Bungoma, Ford-K) said the airline was now doing badly yet it posted a remarkable growth after Parliament wrote off its Sh6 billion debt in 1986.
“Today, KQ is a pale shadow of itself. It is now limping. It is bleeding and it’s the patriotism of Kenyans that will unearth the problem,” he said.
