Members of Parliament (MPs) led by Majority Leader, Aden Duale, have demanded closer investigations to establish the cause of ever worsening Kenya airways financial reports.
The lawmakers are citing questionable management and a lopsided agreement with a partner foreign airline as they protested the ‘skewed’ ownership agreement between the national carrier and Dutch airline, KLM.
Majority Leader Aden Duale yesterday moved a motion to suspend business to discuss the “imminent collapse” of the national airline.
“Kenya Airways has been performing dismally in the last four years, reporting a cumulative loss before tax of Sh71.4 billion,” said Aden Duale terming it technically insolvent.
“This has resulted in the airline being technically insolvent with a negative equity of over Sh36 billion. There are overdue payments of over Sh15 billion to creditors and the short team loan position is currently in excess of Sh140 billion,” he added as he moved the motion.
“This operational mess has been presided over by the former and the current management of the airline,” said Mr Duale.
The MPs demanded the proper accounting of the funds the government has been pumping to Kenya Airways noting that National Government owns 29 percent of total shares.
“Some decisions have to be made on this matter. According to the MoU between KQ and KLM, the CEO cannot be sacked without the concurrence of KLM. At the same time, the current head of network planning is a KLM employee. This is a conflicted situation and some decisions have been made that suggest that the individual is working for the interests of KLM and not KQ,” said Duale.