KQ to sell four planes after recording massive loss

Acting transport minister James Macharia who appeared before the Transport, Public Works and Housing Committee of the National Assembly on Tuesday said that Kenya Airways is planning to sell four of its older planes to raise money after recording massive loss.

Mr. Macharia told the committee that the sale was a part of the recovery strategy KQ planned to employ after it made an historic loss of KSh 25.7 billion in the last financial year.

The airline had earlier announced that it secured a Sh20 Billion loan from AfrEximbank to avoid grounding its operations.

KQ posted a Sh25.7 billion loss that it blamed on competition from Middle East carriers, high operating costs and   travel advisories that led to a slump in the tourism industry.

The airline also blamed runway closures for renovation, for eating into the company's 2014/2015 full-year earnings.

The Transport, Public Works and Housing Committee of the National Assembly had cited poor leadership of the airline and embezzlement of funds as a part of the declining profits.

The committee led by Kisumu Senator Anyang' Nyong’o pointed an accusing finger to the former boss, Titus Naikuni for the airline's woes.

The committee singled out that Naikuni was not suitable for the job since he had no prior experience in the aviation field.

The loss by Kenya Airways is the biggest to have ever been recorded in Kenya by a company listed on the Nairobi Securities Exchange (NSE).

Since the exit of Titus Naikuni, long-term chief executive officer in 2014, the airline has been posting negative results, having posted a KSh 3 billion loss in 2014.