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Economy

AG wants suit against Kenya Airways bailout purged

Attorney General Kihara Kariuki
Attorney General Kihara Kariuki. FILE PHOTO | NMG 

The Attorney General has asked the High Court to dismiss a case activist Okiya Omtatah filed seeking to stop any planned bailout of Kenya Airways #ticker:KQ or nationalisation of the carrier.

In reply to the suit filed in December, Attorney General Kihara Kariuki said Mr Omtatah did not establish the grounds for him to be granted the orders he sought. He said the petition seeks to prohibit a process sanctioned by MPs yet the House is not a party to the suit. The AG sought the dismissal of the case, arguing that it also seeks to challenge the rationality of Executive and legislative policy decisions, contrary to the doctrine of separation of powers.

When they appeared in court Thursday, Justice James Makau directed other parties named in the case, including the Kenya Airways board, the CEO and Transport ministry, to file their responses and appear for directions on March 25.

In the petition, Mr Omtatah said there should be no bailout unless the board vacates and the Auditor General conducts a forensic audit on its debt.

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