KQ Boss Blames Sh3b Loss in 3 Years on KAA Slips

Kenya Airways (KQ) has apportioned blame on its loss-making streak to the Kenya Airport Authority (KAA) which it says caused it more than Sh3 billion in the past three years. 

The national carrier better known by its airline code KQ links this cost to KAA operational inconsistencies and inefficiencies at the Jomo Kenyatta International Airport (JKIA), revealing lack of institutional coordination that is becoming its source of financial pain.

Airport operations, which are mandated to KAA, are not smooth because of limited infrastructure, especially at the passenger terminals and taxiways.

This, according to Managing Director and CEO Allan Kilavuka, has given the national airline a bad name in the international market. Customers on transit via Nairobi therefore opt not to fly KQ because they are avoiding JKIA, leading to revenue losses. The airline tried to engage KAA to take over operation of the terminals but the proposal was shot down.

“The airport needs to be efficient. There has to be a change until we get to a situation where KAA becomes more efficient, becomes more of a customer,” Kilavuka said yesterday during a media briefing. 

“At some point we wanted to run the airport because of this (inefficiencies) because our fate is tied to this airport. If the airport is not performing well, we will not perform well.”

Passenger service saw KQ witness an operating loss of Sh4.5 billion in the half year ending June 2022 when its net losses stood at Sh9.86 billion.  KQ passenger traffic has marginally increased in the past decade unlike some of its peers which have witnessed double digit growth.

KAA undertook the renovation of terminals 1B and C early last year, but fell behind the completion date by 10 months until last month, crippling operations at the passenger terminals.

The agency has also in recent years failed to deliver various airport infrastructural projects including construction of the Sh55 billion Green Field terminal that was cancelled over alleged corruption.