Stop Kenya Airways’ see-sawing strategyTuesday March 28 2023
News that the State is close to approving a new restructuring plan for Kenya Airways (KQ) to replace the one introduced by the previous administration is worrying.
The State, as the principal shareholder in KQ, should settle on one strategy that clearly charts the revival path for the airline that has been in losses for the past 10 years.
The KQ revival strategy has been shifting way too long, sometimes expanding fleet size and sometimes cutting it amid piling debts and rising dependence on taxpayers’ money to stay afloat.
The administration of former President Uhuru Kenyatta introduced a plan in 2021 under which the government agreed to provide loans and eventually take over KQ’s debts.
The strategy was a departure from an earlier one to nationalise the airline because of its strategic role in the economy.
The William Ruto administration has in the past alluded to crafting a financing plan that will see KQ stop depending on operational support from the exchequer beyond December 2023.
While drawing a new strategy sounds good, it may be another recipe for disruption at KQ.