Why Transport CS nominee Chirchir wants Gov't shares in KQ increased from 48% to 80%

Roads and Transport Cabinet Secretary nominee Davis Chirchir has recommended that the Kenyan government increase its ownership in national carrier Kenya Airways from the current 48.9% to 80%, suggesting that the move will revitalise the ailing airline.

Chirchir’s statement came during his vetting by the National Assembly Committee on Appointments on Friday, as he outlined a comprehensive strategy to address the airline's ongoing financial challenges.

According to Chirchir, despite the Kenyan government injecting an estimated Ksh.600 billion into the airline, it has struggled to remain operationally afloat amid persistent financial constraints.

"The reforms at the airline needs a lot of communication and ownership by KQ employees. We are going to sit down and get them to understand that there is a problem that must be sorted out internally," he said.

Chirchir also pointed out that KQ's current fleet, which includes a high number of Embraer aircraft, does not meet the demands of long-haul flights, thereby limiting the airline's competitive edge.

The mismatch between fleet capabilities and market needs, Chirchir noted, has contributed to the airline's struggles, making it less attractive for passengers who carry substantial luggage.

"It is self defeating to have the highest fleet of about 13 Embraers aeroplanes. Customers have to choose alternating flights when they might have wanted to actually fly on Kenya Airways," he said.

To address these issues, Chirchir proposed a dual approach: enhancing government control while also seeking partnerships to bolster KQ's global aviation network.

"In its 2023 accounts, KQ had an operating profit of Ksh.10 billion. We need to look at what they are doing right and build on," he said.

"I think we need to bring in a partner. Successful hotels, for example, build networks around the world to be able to push their customers into their networks. We need to build a network of a supporting airline that we can leverage on to be able to bring KQ out of the current challenge it is facing."