12 °c
London
Friday, June 2, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Aviation

Kenya Airways on sale

Staff by Staff
June 29, 2020
in Aviation, Capital Markets, Finance, Government, Kenya, M&A, Transport, Travel
Reading Time: 2 mins read
1.5k 62
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

The aviation sector in Kenya is experiencing an interesting adjustment after a bill was tabled in parliament to guide the sale of Kenya Airways (KQ).

Kenya’s Parliament wants to have the government take back full control of the national carrier by October this year.

“We are ready to complete the transactions once Parliament passes the Bill,” Treasury Secretary Ukur Yatani.

Kenya Airways has been making massive losses since 2014 and this has angered the government which owns a whooping 48.9% shares against 7.8% held by Air France-KLM.

Reports from East Africa’s largest economy indicate that Air-France KLM, has opted to exit the partnership and has the option of selling its stake to the government and staying on as a technical partner for the airline.

According to Kenyan media, the bill was tabled in Parliament on Thursday setting the stage for the buyout of minority shareholders at a premium and converting shares held by banks into Treasury bonds.

Also read: World Bank approves US$1B funding for Kenya budget support

Solomon Kitungu, the Principal Secretary at the Ministry of Transport said Thursday that government has reached an agreement with Air-France KLM on the offer price, which will be a premium on the carrier’s prevailing trading price at the Nairobi bourse.

“We have already developed a formula for valuing the shares owned by the minority shareholders,” Solomon Kitungu said.

The same KLM offer price will be used to acquire the minority shareholders, who hold about 2.8% of the shares currently valued at Sh 397M.

Experts analysis of the bill indicate that Kenya Airways will become one of three subsidiaries in an Aviation Holding Company. The others will be Kenya Airports Authority, which will operate all the country’s airports including Jomo Kenyatta International Airport (JKIA) in Nairobi, under an investment arm dubbed Aviation Investment Corporation.

Nationalisation will exempt Kenya Airways from taxes on engines, maintenance and fuel, allowing it to sell cheaper tickets, Mr Pkosing said.

The airline charges more than competitors, forcing price-sensitive passengers through hubs like Addis Ababa and Kigali.

Source: Taarifa Rwanda

Related

Tags: Air France KLM Groupair travelairlinesAviationAviation Investment Corporationfinancial lossJomo Kenyatta International AirportKenyaKenya Airports AuthorityKenya AirwaysKenya Airways on saleshareholdersSolomon KitunguTransportTravelTreasury Secretary Ukur Yataniкенияكينياケニア肯尼亚
ScanSendShare615Tweet385Share108Pin138Send
Staff

Staff

Related Posts

Banking

AfDB appoints Richard Kwaku Ofori-Mante acting director of the agricultural finance and rural development dept

by Fabio Scala
June 2, 2023
Economy

The role of Angola banks and insurers in the rise of local E&P players

by Energy Capital & Power
June 2, 2023
Finance

AfDB to unlock significant resources for low income countries – Adesina

by Fabio Scala
June 1, 2023
Airline

Ethiopian now flying New York – Abidjan nonstop

by FurtherAfrica
June 1, 2023
Trade

Uganda and Kenya coffee export to increase in 2023/24

by Farmers Review Africa
June 1, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

Economy

EBC and MultiChoice to strengthen combat of piracy in Ethiopia

by FurtherAfrica
June 2, 2023
0

MultiChoice Africa Holdings B.V (MAH) and the Ethiopian Broadcasting Corporation (EBC) have announced today a new cooperation agreement in the...

Read more
Ethiopia energy access

South Africa private companies to add 4Gw to grid by end 2024

June 2, 2023
Guidelines for PanAfrican payments and settlement system in Nigeria

TotalEnergies renews production license for Nigeria’s deep offshore block

June 2, 2023

South African digital bank Tyme raises US$77.8M

June 2, 2023

AfDB appoints Richard Kwaku Ofori-Mante acting director of the agricultural finance and rural development dept

June 2, 2023

FurtherAfrica Partners Network

The Exchange Farmers Review Africa 360 Mozambique
TechGist Africa Energy Capital & Power Club of Mozambique
Taarifa Rwanda Web3Africa See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa  

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 107,193 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
 

Loading Comments...