KQ yet to sell Embakasi land a year after announcement
Chief executive Mbuvi Ngunze says the process of selling the land is yet to be finalised. PHOTO | FILE
Kenya Airways is yet to sell a 30-acre piece of land in Nairobi’s Embakasi area, more than a year after announcing its disposal as part of asset sale to boost its financial position.
The sale was announced in January last year and was expected to go for more than Sh2 billion.
Chief executive Mbuvi Ngunze Thursday told Parliament the process of selling the land is yet to be finalised.
“The land we are selling at Embakasi is currently rented to a third party with go-downs and warehouses,” he told the Senate Committee on Roads and Transportation. Selling the land, he said, was pegged on plans to monetise assets that are not in full use.
In November last year, Mr Ngunze had intimated the airline was at an advanced stage of negotiations on the land with a bidder and that the deal would be closed after two months.
KQ that reported an Sh11.9 billion after-tax loss in the half year ended September, is focusing on monetising assets to attract additional funding from shareholders.
Aside from the sale of land, KQ in March sold off its prime landing slot at London’s Heathrow airport, which it argued was not giving it returns on investments.
“We had to reduce the level of loss of flying to London by reorganising the way we fly because we had an asset sitting 13 hours on the ground,” said Mr Ngunze.
In January, the airline sold two Boeing aircraft to a US-based carrier, a deal that brought in Sh200 million.
An additional five aircraft have been sub-leased in a move anticipated to have reduced the airlines’ lease costs by Sh500 million by May. The airline is set to send home up to 600 employees beginning next month.
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