House Committee Seeks Update on Kenya Airways Investment Proposal
A committee of the National Assembly has called on the Ministry of Roads and Transport to provide an update on Kenya’s long-term aviation strategy following the withdrawal of the National Aviation Management Bill 2020. This bill, which aimed to nationalize Kenya Airways and reform the aviation sector, has raised concerns among lawmakers about the viability of future strategies.
During a meeting with key aviation stakeholders, including Principal Secretary Mohamed Daghar and Kenya Airways CEO Allan Kivaluka, the Committee on Implementation, chaired by Hon. Raphael Wanjala, expressed the need for clarity on alternative strategies in the absence of the proposed legislation. The lawmakers highlighted the importance of a robust aviation sector to the country’s economic development.
“The Principal Secretary must inform the Committee about the strategies put in place after the Bill’s withdrawal,” Wanjala stated, emphasizing the urgency of the matter. The Committee is particularly focused on a prior recommendation for the nationalization of Kenya Airways and the creation of an aviation holding company.
Kivaluka clarified that Kenya Airways has no intentions of nationalization and is instead pursuing a project called “Kifaru 2.0,” aimed at enhancing growth and operational efficiency. He stated, “We are seeking a strategic investor to help expand our fleet and improve service delivery,” acknowledging ongoing issues with flight delays.
The meeting also touched on the controversial investment proposal from the Adani Group, which seeks to invest $1.85 billion over 30 years into Jomo Kenyatta International Airport. Daghar noted that while the proposal is still active in court, no project agreement has been finalized. The MPs questioned the Ministry’s reliance on private investment, urging for alternative funding solutions through yearly budgetary allocations.
The lawmakers called for increased public awareness regarding the Adani deal to address growing concerns among citizens. The Committee’s next steps will focus on obtaining a comprehensive update from the Ministry to ensure the future of Kenya’s aviation sector remains on a path to competitiveness and sustainability.
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