MPs Reject Plans To Merge Kenya Airways With KAA

Parliament has suspended proposals to merge Kenya Airways (KQ) with the Kenya Airports Authority (KAA).

As KQ is struggling financially the proposed merger was being considered as a possible measure to shore up the national carrier. Despite the company’s recent financial restructuring in May last year Cabinet warned that should the merger fail KQ could collapse within the year if it did not receive significant capital injections. However, the Public Investment Committee (PIC) determined that the merger would have bankrupted KAA. 

PIC chair Abdulswamad Nassir has confirmed that no transaction will proceed until the House concludes its investigations. Commenting, "We are directing the Auditor-General to move fast and undertake a forensic audit on this transaction.” 

Cabinet has also advised the development of a comprehensive national aviation policy that offers significant tariff breaks.