Nationalisation of Kenya Airways nudges closer

Kenyan parliamentarians have rejected a proposal to exclude the Kenya Airports Authority (KAA) from a new holding company mooted as part of the nationalisation of Kenya Airways (KQ, Nairobi Jomo Kenyatta). This is according to a report tabled in the Kenyan Parliament by the National Assembly Transport Committee. It follows a second round of public participation to get feedback on the proposed National Aviation Management Bill 2020, the law that is to return the loss-making airline to state ownership, Kenyan media reports. The Law Society of Kenya had submitted that the KAA be separated from the Kenya Aviation Corporation (KAC), the proposed new holding company which would oversee three subsidiaries: KAA, Kenya Airways, and an investment arm called the Aviation Investment Corporation. The society argued that the loss-making airline should not be merged with the profitable KAA in any arrangement that could financially burden the latter. However, the parliamentary committee, chaired by Member of Parliament David Pkosing, said the KAA would not lose its autonomy under the proposed aviation holding company. “The Bill does not seek to merge Kenya Airways and the Kenya Airports Authority within the meaning of the Competition Act, but to consolidate the aviation assets so as to effectively compete in the international market,” the report read. KAC Board members would have to be suitably qualified with a degree in aviation, business administration, finance, audit, law, or engineering, it said. The committee also rejected calls that President Uhuru Kenyatta should not chair a proposed National Aviation Council, that would give policy direction in aviation matters. “The President has the power to perform any executive function provided for in the Constitution or in national legislation,” it stated. Kenya’s Environment Cabinet Secretary would also get a seat on the council, the committee decided, citing the importance of meteorological services in aviation. According to the report, the committee acceded to public requests for the Salaries and Remuneration Commission to regulate salaries paid to directors and board members.